There is a big news coming about Dharma Productions. As per the reports Karan Johar, one of Bollywood’s most successful filmmakers, recently made a big decision regarding his production house. He sold 50% of his company to Adar Poonawalla, the CEO of Serum Institute, and after this he explained why he choose to do so. Karan’s main aim is to expand Dharma Productions in a way that allows them to fund most of their films themselves, without relying on outside studios. By doing this, the company can keep all the profits from their movies instead of splitting them with other partners.
During his speech at CNBC-TV18 Global Leadership Summit sharing the details with Adar Poonawalla and producer Siddharth Roy Kapur Karan opened up as to why this decision was taken. He stated that it was very crucial for them to own the rights to their movies especially concerning profits.He said “Intellectual property has always been a major part of valuation. Earlier, when we made big films, we had to partner with big studios, which meant sharing the revenue. This deal allows us to fund more films ourselves and enjoy the full profits,” But Karan added that for very expensive films, which come for anywhere between Rs 250 crore to Rs 300 crore, Dharma will still require financial backers.
Focus on Middle-Budget Films
Karan added that his chief concern now is producing middle range films instead of big budget productions. He pointed out that these mid ranged films that cost between Rs 65 crore to Rs 80 crore give better returns than most larger movies. Big films on the other hand take a longer time to cover costs since the profit reports are small. Middle-budget films are not like that – they are easier to handle and can even yield substantial revenues if successful,” Karan pointed out that Rs 50-100 crore films are the most significant since they form the life-line fulfilling market’s bread and butter needs. They are cheaper to make and if there are audience touch point with the films then it can yield good profits. For him, this is wiser business approach that than risking millions of dollars on potential mega hits every time.
Big Films and Smaller Projects
Although Karan isn’t completely stepping away from making big films he’s cautious about how they’re funded. For example, his company co-produced Brahmastra a couple of years ago. The film had a massive budget of Rs 400 crore and earned about Rs 420 crore at the box office. While it was a commercial success, the profits weren’t huge because of its high production costs. At the same time, Dharma has also been producing smaller-budget films like JugJugg Jeeyo and Badhaai Do, which require less investment but still attract audiences. These smaller projects are helping Karan achieve a balance between passion and profit.
The Bigger Picture
Karan believes this new partnership with Adar Poonawalla will give Dharma Productions the financial strength to produce a variety of films from big to small. By focusing more on mid-sized projects, Dharma can create great content while ensuring financial stability and growth. According to Karan, “This deal is about securing our future. It’s not just about making films it’s about making smart business decisions that will help us tell more stories and reach more people.”
