'It is not always about making money and getting returns': Adar Poonawalla and Karan Johar discuss Dharma acquisition

Karan Johar, Adar Poonawalla, and Siddharth Roy Kapur discussed the transformative joint venture between Dharma Productions and Poonawalla's entrepreneurial insight, at CNBC TV18's Global Leadership Summit 2024. This unprecedented 50/50 partnership promises to usher in a new chapter for the Indian entertainment industry, with external investments shaping creative expansion, distribution networks, and new verticals.

Karan Johar, at the helm of Dharma Productions, shared the rationale behind inviting an outside partner into what has traditionally been a closed industry. "For our growth, we needed investment and someone who could allow me my creative vision while bringing strong business insights," Johar shared.

Adar Poonawalla, typically associated with the pharmaceutical sector, revealed his long-held admiration for storytelling.

“Partnering with an iconic brand like Dharma is a chance to harness soft power to tell impactful stories,” he explained, emphasizing how this partnership merges entertainment with corporate strategy.

Addressing the future, Johar noted the strategic importance of owning intellectual property (IP), particularly for medium-budget films. “The real money lies in the middle-budget films, where the cost-to-profit ratio is super high,” he explained.

In response to shifting audience expectations in post-pandemic India, Johar acknowledged the rise in high-concept and blockbuster films: “Today’s audience is discerning; they want a cinematic experience that isn’t available on streaming platforms.”

Poonawalla echoed Johar’s sentiment on evolving audience dynamics, while also addressing the hurdles potential investors face in Indian cinema. “The entertainment industry requires patience and passion. Unlike e-commerce or manufacturing, there is a gestation period, and profits may take years to manifest,” he explained.

Looking five years into the future, Johar envisions Dharma as a creative powerhouse with thriving new verticals, elevated by Poonawalla’s strategic backing. “I hope this partnership becomes an immense success story, and we can continue to tell beautiful, brilliant stories while building a more profitable infrastructure,” Johar concluded.