Mukesh Ambani eyes stake in Karan Johar's Dharma Productions: Report
Reliance Industries Ltd (RIL), headed by India's richest businessman Mukesh Ambani, is said to be in talks to buy a stake in Karan Johar's Dharma Productions. Per a report by The Economic Times, the deal, if it goes through, could bolster RIL's presence in the Indian content production space, enhancing its current assets such as Jio Studios and Viacom18 Studios. However, the size of the stake being discussed remains unknown.
Johar's previous attempts to monetize stake in Dharma Productions
Currently, Johar owns a majority stake of 90.7% in the production house, while his mother Hiroo Johar owns the remaining 9.24%. The media portal, citing sources, reported that Johar has been trying to monetize his stake in Dharma Productions for some time now. However, previous deals fell through due to disagreements over the company's valuation. Rising production costs, reduced theater attendance, and the increasing dominance of OTT platforms have posed challenges for Bollywood studios, fueling the demand for new investments.
Dharma Productions's significant role in Bollywood
Meanwhile, Dharma was recently reported to be in discussions with Saregama for a potential majority stake sale. However, Saregama said in a stock exchange filing on October 8 that there were no significant updates. Founded by Yash Johar in 1979, Dharma Productions has been a major player in the Bollywood industry. The production house is known for its successful films like Kabhi Khushi Kabhie Gham, My Name Is Khan, and Student of the Year, among others.
RIL's growing interest in the Indian entertainment sector
RIL's reported interest in Dharma Productions fits in with its larger strategy to expand its footprint in the Indian entertainment industry. Its expanding content portfolio includes Jio Studios, Viacom18 Studios, Colosceum Media, and a minority stake in Balaji Telefilms. Jio Studios has become a significant force, generating ₹700cr in box office revenue in FY24. One of its co-productions, Stree 2, went on to become the highest-grossing Hindi film of all time.
