Is Adar Poonawalla the new lifeline of Dharma Production?

Filmmaker Karan Johar has sold a 50 percent stake in Dharma Productions to ar Poonawalla, chief executive officer of Serum Institute of India. vaccine maker, who emerged as a beacon of hope during Coronavirus pandemic, has now stepped in as a saviour for Johar's struggling Dharma Productions for Rs 1,000 crore.

However details of same are not known yet. same was reportedly achieved after long prolonged discussions by Dharma's multiple interested parties; including Saregama and Reliance Industries Limited.

As per financial scenario of Dharma Productions, an immediate intervention was required to prevent dire conditions in production house.

topline more than qurupled for Dharma Productions, whose revenues catapulted to Rs 1,040 crore in FY23 from Rs 276 crore in previous financial year. Profits, however, declined by 59 percent to Rs 11 crore in FY23, with expenditure of Rs 1,028 crore excluded. production house raked in Rs 656 crore in same fiscal year from distribution rights, Rs 140 crore from digital rights, Rs 83 crore from satellite rights, and Rs 75 crore from music rights.

2022 saw next to no yield, amounting to about Rs 19 crore from distribution rights, Rs 167 crore from digital rights, Rs 34 crore from satellite rights, and Rs 21 crore from music rights.

Losses in company have mounted manifold after a series of flops. latest film from Dharma Productions, "Jigra," with Alia Bhatt hasn't helped much. movie brought in only Rs 21 crore in six days after release against a cost of Rs 80 crore. Controversies about movie's similarity to a South Indian movie have furr complicated financial situation for company. All that considered, Dharma's profit after tax plunged sharply to Rs 10.7 crore in FY23 versus Rs 27.1 crore in FY22.

Controversial Return and Box Office Flops

Rocky Aur Rani Ki Prem Kahani" h seen Karan Johar return as a director after five years. According to tre figures, film has gone over Rs 350 crore worldwide on a budget of Rs 160 crore. However, re have been murmurs in tre circles that figures were doubtful. On or hand, Karan's string of flops includes "Kill," "Warrior," "Mr. and Mrs. Mahi," "B News," and "Jigra." Interestingly, makers have emerged with a new game plan of not getting ir work screened by critics before releasing it.

Switching to OTT During Pandemic

During pandemic, Dharma moved to OTT space and released earlier completed films such as "Gunjan Saxena," "Shershaah," and "Gehraiyaan."Karan Johar h set up Dharmatic to be house of web series and low-budgeted films for OTT/ digital media.

story of films has been a mixed one. "Section 375" bombed while "Crimes Diary" did okay but "Haseena Parker" flopped at box office.

A Legacy in Transition

Started by Yash Johar in 1976, Consul India Ltd was base of India's largest film studio, Dharma Productions. Karan Johar took over in 2004 and expanded company furr into vertising, talent management, and digital content. One of latest avowals to innovation is in shape of Dharmatic Entertainment, a digital venture.

A New Chapter for Dharma

ar Poonawalla's investment could be a turning point for Dharma Productions. When new liberal tre policy could change landscape of this entertainment industry so far, Dharma Productions seems at its unprecedented low. refore, hope must shine at its very best from both sides to bring back momentum at Dharma in a competitive market.