Serene Productions, led by business tycoon Adar Poonawalla, on Monday said it has entered into a binding agreement to acquire a 50% stake in filmmaker and producer Karan Johar’s Dharma Productions.
The remaining 50% stake will remain with Johar.
As part of the agreement, Serene Productions will invest ₹1,000 crore in Dharma Productions and Dharmatic Entertainment, collectively known as Dharma. With this investment, Dharma is now valued at ₹2,000 crore.
Johar will spearhead the company’s creative vision as executive chairman and Apoorva Mehta will be the chief executive officer (CEO), the company said.
Commenting on the partnership, Poonawalla, the CEO of vaccine maker Serum Institute of India Ltd, said, “I am delighted to have the opportunity to partner with one of the most iconic production houses in our nation.”
The partnership aims to take advantage of new opportunities by combining Dharma’s storytelling expertise with Poonawalla’s vision and resources, the company said.
Industry experts were positive about the deal, saying that it was a boost for the Hindi film industry. Siddharth Roy Kapur, founder, Roy Kapur Films and filmmaker, said, “I see this as a very positive development for the industry and a strong indicator of the immense growth potential of the Indian production sector.” Now, the opportunity for the Indian creative industry to build value and take Indian soft power to the world is immense.
Shariq Patel, producer and former CEO of Zee Studios, said, “This is fantastic news for the film industry. Having a blue-chip investor or a major company show confidence in the sector is a significant win.” The deal not only highlights the growing credibility and potential of the Indian film industry but also signals that it is being recognized as a key player in the global entertainment landscape.
The deal is potentially a bit negative for other movie producers and music companies, but good for corporatization of the Hindi movie industry which has been grappling with tough times over the past 5 years, Abneesh Roy, ED, Nuvama Institutional Equities, said. “The industry is moving out from weaker hands to financially much stronger companies.” This will hopefully improve funding for the Hindi movie industry and lead to a more sustainable pipeline in a volatile industry.
