Karan Johar and Adar Poonawalla discuss their strategic partnership for Dharma Productions: “We truly believe this is the best partnership for the growth we envision”
Karan Johar and Adar Poonawalla took the stage at the CNBC-TV18 Global Leadership Summit to discuss their joint venture. In October, it was revealed that Adar Poonawalla’s Serene Productions would acquire a 50% stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment for ₹1,000 crore.
The collaboration sparked significant excitement within the Indian media and entertainment industry, as it marks one of the few instances of outside investment in the content creation sector. Both Karan Johar and Adar Poonawalla agreed that the partnership was a natural progression for Dharma Productions. “I feel this is a great marriage of two minds,” Johar said. “It was an easy decision for us, and we truly believe this is the best partnership for the growth we envision.”
Reflecting on this new chapter for Dharma Productions, Johar emphasized that after years of producing films and building the brand, he realized that to grow further, he needed a partner who could bring fresh insights into business strategy. “I needed the partnership for that… someone who could help me create a vision and contribute strongly to growth with their business insight,” he said.
Adar Poonawalla admitted that his decision to enter the media and entertainment space came as a surprise. He stated, “I was as shocked as everyone else was for making this move.” Despite his lack of direct involvement in the industry before, he was drawn to Johar’s storytelling ability and the potential for growth in the business.
“It’s not such a bad business opportunity… with verticals like music distribution and content creation, these are areas that will thrive in the next 5-7 years,” he remarked.
Poonawalla acknowledged that investing in such an unpredictable sector came with risks, but the value of Dharma’s brand made it an attractive choice. “How do you quantify stories that change people’s biases or make iconic films? That’s something I saw with Dharma,” he said.
Their partnership, while financially strategic, also has a personal dimension. During the conversation, moderated by producer Siddharth Roy Kapur at the Global Leadership Summit, Johar joked about the complexities of corporate negotiations, remarking that he never imagined he would be discussing terms like ‘tags’ and ‘exits.’
“I know what drag is in a totally different way,” Johar laughed, referencing the business jargon he had to navigate. However, he expressed deep satisfaction with the collaboration, saying, “I am more accountable now than I’ve ever been… this is something my father always tried to make me understand, something Apoorva (Mehta, Dharma CEO) had been trying for 25 years.”
Both Johar and Poonawalla addressed the broader myths surrounding investment in the Indian media and entertainment sector.
Poonawalla acknowledged the industry’s unpredictable nature, with films sometimes underperforming or going over budget. “There’s always going to be some kind of gestational period,” he explained, noting that the next five years would be critical in determining whether the sector’s growth met expectations.
Johar added that while owning intellectual property (IP) had been central to Dharma’s success, the venture also offers the opportunity to retain more profits by fully owning films. However, he admitted that large-scale films would still require studio backing.
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