(Photo : Serum institute)

In a major business move, Adar Poonawalla, CEO of Serum Institute of India, has made his entry into the Indian film industry by acquiring a 50% stake in Karan Johar's Dharma Productions. The deal, valued at INR 1,000 crore,was executed through Poonawalla's newly established private investment firm, Serene Productions LLP.

The acquisition marks Adar Poonawalla's foray into film production. The move has generated widespread interest in the industry as he is primarily known for leading the world's largest vaccine manufacturer, the Serum Institute of India.  According to reports from exchange4media, Serene Productions was established in anticipation of this collaboration with Karan Johar, signalling that this acquisition may be just the beginning of Poonawalla's ventures in the media and entertainment sector, or this could be a partnership based on friendship.

"I am delighted to have the opportunity to partner with one of the most iconic production houses in our nation, along with my friend Karan Johar. We hope to build and grow Dharma and scale even greater heights in the years to come, said Adar Poonawalla in a statement.

Karan Johar, who inherited Dharma Productions, founded by his father Yash Johar in 1979, will continue to hold the remaining 50% stake in the company and serve as its Executive Chairman and Apoorva Mehta will continue as CEO.

Dharma Productions 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. The company launched its subsidiaries Darma 2.0 in 2016 for advertising commercials and Dharmatic Entertainment for OTT content production in 2018, which will also be part of the deal.

While Dharma has been a dominant player in Bollywood, Karan Johar, who held 90.7% stake in the production house, has been seeking to monetize his stake for some time. The rising film production costs,stiff competition from OTT platforms and changing audience preferences has adversely affected the revenues and profits of most production companies. The present deal would give much needed financial stability for Dharam productions to adapt to the changing market, while Karan Johar can retain his creative freedom.

The deal follows earlier reports that Reliance Industries was in discussions to acquire a stake in Dharma Productions. While Karan Johar did not dismiss or accept the speculation on the reliance deal, he later had clarified on the social media platform "X" that he "still remains the owner of Dharma" despite the media buzz about the potential Reliance deal.