Strategic Move in 2024

In 2024, Karan Johar made waves in the entertainment industry by selling a 50% stake in his production company, Dharma Productions, to Adar Poonawalla, CEO of Serum Institute of India, for an impressive Rs 1,000 crore. During a recent discussion with Raj Shamani, Karan revealed that the primary motivation behind this decision was the need for capital to fuel growth and long-term expansion.

Legacy and Growth

Karan reflected on the evolution of Dharma Productions, acknowledging that while his father, Yash Johar, founded the company, its real success began after 1998 with Karan’s directorial debut, Kuch Kuch Hota Hai. He candidly shared, “Before Kuch Kuch Hota Hai, we faced five consecutive flops. What I inherited from my father was goodwill, not financial security.” This highlights how the emotional and reputational legacy of his father has been a driving force in Karan’s journey, rather than a financial advantage.

Shifting Business Models

Karan also discussed the earlier collaborative filmmaking model at Dharma, where profits were often shared with partners. “We couldn’t finance films solely on our own capabilities, so our biggest hits had partners. However, I wanted profitability to remain within Dharma, which led me to stop engaging in collaborative projects,” he explained.

Post-1998 Success

After 1998, films like Kabhi Khushi Kabhie Gham, Kal Ho Naa Ho, and Kabhi Alvida Naa Kehna marked a turning point for Dharma Productions. The journey was not without its challenges; following his father’s passing in 2004, Karan relied heavily on his childhood friend and current CEO of Dharma, Apoorva Mehta. “He left his life in London overnight to support me. To this day, I have no business acumen, but I possess a strong instinct. Apoorva manages the business side, while I focus on the creative aspects,” Karan noted.

Partnership with Adar Poonawalla

Discussing the rationale behind bringing Adar Poonawalla on board as an equity partner, Karan stated, “In 2023, we recognized the need to scale. Organic growth would have taken us an additional 5–7 years. We required capital. Today, I’m thrilled to have Adar on board. He’s a remarkable individual with keen instincts. Now, I feel a sense of accountability—this is someone else’s investment, and I must deliver success.”

Addressing Criticism

Karan also responded to criticisms regarding Dharma’s profitability in 2024, stating, “Kill was critically acclaimed, Mr & Mrs Mahi turned a profit, Bad Newz was successful, and Jigra broke even. We are now producing our first Punjabi film, Akaal, and Dhadak 2 is on the horizon. We remain optimistic.”

Philosophy on Success and Failure

Reflecting on the ups and downs of the entertainment industry, Karan concluded with his characteristic honesty: “I don’t take success too seriously or let failure affect me deeply. I’m indifferent to flops; what I dislike are average films. If I make a mistake, please let me know—I’m here to learn and move forward.”