Speculations are rife that Mukesh Ambani-led Reliance Industries Limited(RIL) is set to acquire Dharma Productions, a leading film production company co-owned by Karan Johar and his mother Hiroo Johar. The development comes weeks after RP Sanjiv Goenka Group’s Saregama eyed to take over the production giant. So far, the filmmaker has not yet issued any official statement on the ongoing reports. His Twitter bio, however, hints at no deal between the two companies as of now.
The recent report suggested that Reliance is in discussion to acquire a stake in Dharma Productions as Karan has been looking for a strategic partnership. Reliance had earlier acquired a minority stake in Balaji, and a similar acquisition could be seen in the case of Dharma, as reported by the Economic Times. If the acquisition is finalised, RIL will strengthen its already impressive media and content portfolio. RIL already owns Jio Studios, Viacom18 Studios, Colosceum Media, and a minority stake in Balaji Telefilms.
Amid reports of acquisition, Karan’s Twitter bio has grabbed attention. His bio reads, “Jigra o, ab ki teri baari oh! Owned by Karan Johar & CEO Apoorva Mehta.”The filmmaker has made it clear that he is still the owner of Dharma Productions, founded by his father Yash Johar in 1979. His company is believed to weighing on a fundraising plan to overcome financial stress. As per reports, the company’s profit has plunged by 59 per cent despite its revenue increase in fiscal year 2023. The company’s expense has surged to 4.5 times, according to the data from Tofler.
In FY 23, Dharma Productions earned Rs 1,040 crore as compared to Rs 276 crore in the previous year. It is reportedly believed that the emerging OTT platforms, diminishing theatre footfalls, and rising production costs have affected the business of the production studios. Earlier, the reports about Dharma selling a majority stake to Saregama were doing rounds on the internet. However, Saregama stated that there were no material developments to report at that time.
