Karan Johar and Adar Poonawalla took the stage at the CNBC-TV18 Global Leadership Summit to discuss their joint venture. In October, it was announced that Serene Productions, led by Adar Poonawalla, will acquire a 50% stake in filmmaker Karan Johar’s Dharma Productions and Dharmatic Entertainment, for a total of ₹1,000 crore.

The collaboration generated significant excitement within the Indian media and entertainment industry, especially as it’s one of the few instances of outside investment coming into the content creation sector. Both parties agreed that the partnership was a natural progression for Dharma Productions. “I feel this is a great marriage of two minds,” Johar said. “It was an easy decision for us, and we truly believe this is the best partnership for the growth we envision.”

Talking about Dharma Productions Johar, reflecting on this new chapter for Dharma Productions. He emphasised that after years of producing films and building the brand, he realised that in order to grow further, it was crucial to partner with someone who could bring fresh insights into business strategy. “I needed the partnership for that… someone who could help me create a vision and contribute strongly to growth with their business insight.”

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Adar Poonawalla, on his part, admitted that his decision to enter the media entertainment space came as a surprise. “I was as shocked as everyone else was for making this move,” he said. Despite his lack of direct involvement in the industry before, he was drawn to Johar’s storytelling ability and the potential for growth within the business.

“It’s not such a bad business opportunity… with the verticals like music distribution and content creation, these are areas that will thrive in the next 5-7 years,” he remarked.

Poonawalla acknowledged that investing in such an unpredictable sector was not without risk, but the value of Dharma’s brand made it an appealing choice. “How do you quantify stories that change people’s biases or make iconic films? That’s something I saw with Dharma.”

Their partnership, while financially strategic, also involves a personal bond. In the conversation, moderated by producer Siddharth Roy Kapur at the Global Leadership Summit, Johar joked about the complexities of corporate negotiations, sharing that he never thought he would be discussing things like “tags” and “exits.”

“I know what drag is in a totally different way,” he laughed, referencing the business jargon he had to navigate. Yet, he expressed his deep satisfaction with the collaboration, saying, “I am more accountable now than I’ve ever been… this is something my father always tried to make me understand, something Apoorva (Mehta, Dharma CEO) had been trying for 25 years.”

Both Johar and Poonawala also addressed the broader myths surrounding investment in the Indian media entertainment sector.

Poonawala acknowledged the industry’s unpredictable nature, with films sometimes underperforming or going over budget.  “There’s always going to be some kind of gestational period,” he explained, noting that the next five years would be a critical period to see if the sector’s growth matched expectations.

Johar added that while owning intellectual property (IP) had been central to Dharma’s success, the venture also opens up the opportunity to retain more profits by fully owning films. However, he admitted that large-scale films would still require studio backing.

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