Mukesh Ambani's Reliance Industries Ltd. (RIL) is reportedly discussing acquiring a stake in Dharma Productions, a leading Bollywood film production house owned by filmmaker Karan Johar. According to sources cited by The Economic Times, the deal aims at strengthening Reliance's growing media and entertainment portfolio. The size of the stake being negotiated has not been disclosed yet.
Karan Johar, who currently holds a 90.7% stake in Dharma Productions, has been seeking to monetize his stake for some time. Previous attempts to sell a portion of his holding in the company were unsuccessful due to disagreements over valuation, according to the same report.
Dharma Productions, founded by Yash Johar in 1979 and inherited by his son Karan Johar, is well-known for producing numerous successful Bollywood films and has become a powerhouse in the industry. The production house has many super hits to its credit, starting from its first film Dostana in 1980, critically acclaimed Agneepath in 1990, followed by rom-com hits Kuch Hota Hai, Kal hon Naa Ho to the biopics Gunjan Saxena: The Kargil Girl and Vikram Batra, Sher Shah, released in 2020 and 2021, respectively.
The company launched its subsidiaries Darma 2.0 in 2016 for advertising commercials and Dharmatic Entertainment for OTT content production in 2018.
For Reliance Industries, this acquisition aligns with its broader strategy of increasing its presence in India's content production industry. RIL's media and entertainment arm already includes major players like Jio Studios, Network18 Media & Investments, Colosceum Media, and CNBC Group, along with digital platforms including First Post, Moneycontrol.com, and Voot. It also acquired a minority stake (24.9%) in Balaji Telefilms in 2017.
Jio Studios has become one of the largest film studios in India, with notable successes such as Star 2, which recently became the highest-grossing Hindi film.
Dharma Productions is an attractive target for Reliance due to its strong brand and track record in Bollywood. In FY23, the production house saw its revenue surge to ₹1,040 crore, though its net profit fell by 59%, primarily due to a significant rise in operational costs.
With increasing competition from OTT platforms and rising content production costs, companies like Dharma are seeking partnerships to secure financial stability and adapt to the changing market.
If the deal materializes, it will further consolidate Reliance's influence in Indian cinema and entertainment. The move could also mark a turning point for Dharma Productions, helping the company transition from being a personality-driven entity to a more professionally managed organization, in line with current industry trends.
The acquisition would be part of a broader trend of consolidation in the media industry as production companies look for strategic partners to address financial challenges and leverage new distribution platforms.
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