For the past few weeks, there have been rumors about Reliance and Saregama talking to Dharma Productions about buying stakes in the company. Now in a surprising turn, Serene Entertainment, led by Adar Poonawalla, has acquired a 50% stake in Dharma Productions for Rs. 1000 crore. Karan Johar will still lead the company.
Talking about the deal, Adar Poonawalla, said, “I am delighted to have the opportunity to partner with one of the most iconic production houses in our nation, along with my friend Karan Johar. We hope to build and grow Dharma and scale even greater heights in the years to come.”
Dharma Production initially approached Saregama which valued the company at Rs. 600 crore. So, the company approached RIL for a better deal. However, Karan Johar finalized the deal with Adar Poonawalla.
Dharma Productions is one of the biggest film production and distribution companies in India. The company was founded by Yash Johar in 1976 and is now run by Johar. The company is known for films like Agneepath, Kuch Kuch Hota Hai, Kabhi Khushi Kabhi Gham, Kal Ho Naa Ho, My Name Is Khan, and Wake Up Sid.
Currently, the company is under financial pressure after the poor performance of its recent film Jigra. The company is also facing challenges of OTT platforms, Shifts in audience preferences, and the changing landscape of the content industry in India. At the same time, Production costs are rising.
As per recent reports, the revenue from operations fell by 50.75% to Rs 512.2 crore in FY24, down from Rs 1,040 crore in FY24. Revenue from distribution and exhibition of films also declined by 83% to Rs 111 crore from Rs 656 crore in FY23. Revenue from satellite rights decreased by 15% to a total of Rs. 70.3 crores. However, the company managed to grow revenue from digital platforms and music. Net profit in FY24 was only Rs 59 lakh which was Rs. 10.7 crores in FY23 and Rs 27.1 crores in FY22.
Related Posts
