Filmmaker Karan Johar sold a 50 per cent stake in Dharma Productions to Adar Poonawalla, executive director of the Serum Institute of India. The vaccine maker, which emerged as a ray of hope during the coronavirus pandemic, has now stepped in as the savior of Johar’s Dharma Productions for Rs 1,000 crore.
However, its details are not yet known. The same is said to have been achieved after long and protracted discussions among multiple Dharma stakeholders; including Saregama and Reliance Industries Limited.
According to Dharma Productions’ financial scenario, immediate intervention was required to avoid dire conditions in the production house.
Revenue more than quadrupled for Dharma Productions, whose revenue catapulted to Rs 1,040 crore in FY23 from Rs 276 crore in the previous financial year. However, profits declined 59 per cent to Rs 11 crore in FY23, excluding expenses of Rs 1,028 crore. The production house collected Rs 656 million in the same fiscal year from distribution rights, Rs 140 million from digital rights, Rs 83 million from satellite rights and Rs 75 million from music rights.
In 2022 there was virtually no return, amounting to approximately Rs 19 million in distribution rights, Rs 167 million in digital rights, Rs 34 million in satellite rights and Rs 21 million in music rights.
Losses at the company have multiplied after a series of failures. Dharma Productions’ latest film, “Jigra”, with Alia Bhatt It hasn’t helped much. The film collected only Rs 21 crore in six days of its release, against a cost of Rs 80 crore. Controversies over the film’s similarity to a South Indian film have further complicated the company’s financial situation. Considering all this, Dharma’s profit after tax plummeted sharply to Rs 10.7 crore in FY23, down from Rs 27.1 crore in FY22.
Controversial return and box office failures
Rocky Aur Rani Ki Prem Kahani” had seen Karan Johar return as director after five years. According to trade figures, the film has crossed Rs 350 crore worldwide on a budget of Rs 160 crore. However, it has There were murmurs in the industry circles that the numbers were dubious. On the other hand, Kareena’s string of flops includes “Kill”, “Warrior”, “Mr. and Mrs. Mahi”, “Bad News” and “Jigra”. Interestingly, the makers have emerged with a new game plan to not make critics review their work before releasing it.
Switch to OTT during the pandemic
During the pandemic, Dharma moved into the OTT space and released previously completed films like “Gunjan Saxena”, “Shershaah” and “Gehraiyaan”. Karan Johar had created Dharmatic to be the home of web series and low-budget films for OTT/digital media.
The history of cinema has been mixed. “Section 375” flopped while “Crimes Diary” did well but “Haseena Parker” flopped at the box office.
A legacy in transition
Founded by Yash Johar in 1976, Consul India Ltd was the base of India’s largest film studio, Dharma Productions. Karan Johar took over in 2004 and further expanded the company into advertising, talent management and digital content. One of the latest innovation statements is in the form of Dharmatic Entertainment, a digital company.
A new chapter for the Dharma
Adar Poonawalla’s investment could be a turning point for Dharma Productions. When the new liberal trade policy could change the landscape of this entertainment industry so far, Dharma Productions seems to be at its unprecedented low. Therefore, hope must shine brightest on both sides to regain Dharma momentum in a competitive market.
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