Mukesh Ambani-led Reliance Industries is reportedly looking to pick a slice of Bollywood producer and director Karan Johar’s Dharma Productions, known for works such as the recently released Jigra, Rocky Aur Rani Kii Prem Kahaani, Ae Dil Hai Mushkil, Student of the Year, Kapoor & Sons, Yeh Jawaani Hai Deewani, Kal Ho Na Ho, Kabhi Khushi Kabhie Gham, and Kuch Kuch Hota Hai.
According to a report in The Economic Times, the conglomerate aims to strengthen its position in the content production industry through the deal. The size of the stake is still unclear.
A source told the daily that Karan Johar, who owns 90.7 per cent of Dharma, has been wanting to monetise his stake for a while. However past deals have fallen through due to disagreements over the valuation. Karan Johar’s mother, Hiroo Johar, owns 9.24 per cent.
This development comes amid persisting financial challenges for the Hindi film industry amid a slowdown in the number of box office hits. Film production costs have risen while footfalls in theaters have taken a beating, also due to the growing popularity of over-the-top (OTT) platforms that offer a gamut of options from the comforts of one’s home.
Reliance’s content production portfolio currently includes Jio Studios, Viacom18 Studios, Colosceum Media and a minority stake in Balaji. Jio Studios is currently one of the biggest film studios in the country.
As per the report, Dharma was earlier in talks with Saregama, backed by Sanjiv Goenka, for the sale of a minority stake.
In FY23, Dharma Productions posted a nearly four-fold surge in revenue to Rs 1,040 crore, from Rs 276 crore in the previous year. However, net profit fell 59 per cent.
In an interview with Faye D’Souza, Karan Johar had said that while his father had established the production house, it was only under him that they started making money. “Fortunately for me, and this is just coincidence, my first, second and third films did really well, and then my father passed away. So a lot of the money that we made at Dharma was made when I started directing,” he said.
Karan Johar’s father, Yash Johar, gave a series of flops after delivering a hit with Dostana in 1980, he said in the interview. As financiers used to put money in the films, they had to return the money with interest. As such if the film failed, the losses were grave too.
Recalling his childhood, Johar said they had to sell off properties and jewellery to sometimes recover from the losses or pay the financiers back.
