Wed Oct 23 00:01:32 UTC 2024: **Summary of the Article:**

– **Adar Poonawalla’s Investment:** Adar Poonawalla, owner of the Serum Institute of India, is set to acquire a 50% stake in Karan Johar’s Dharma Productions for ₹1000 crore.

– **Dharma Productions Valuation:** The current valuation of Dharma Productions and its television operations stands at ₹2000 crore. Karan Johar will retain the remaining 50% stake and continue as Executive Chairman.

– **Financial Context:** Dharma Productions experienced a significant profit drop of 60% in fiscal year 2023, attributable to increased costs amid the pandemic, raising concerns about the company’s financial viability.

– **Reason for Sale:** Karan Johar sought a partner for production support while maintaining creative control, leading to the decision to bring in Poonawalla as an investor, especially after failing to find other viable partners.

– **Past Financial Performance:** Despite revenue increasing to ₹1,040 crore in 2023 from ₹276 crore the previous year, costs also surged, leading to a 59% drop in net profit to ₹11 crore.

– **Future Prospects:** Poonawalla’s investment is intended to provide financial backing for new projects at Dharma Productions amidst the evolving landscape of the entertainment industry post-COVID-19.

This partnership marks a significant transition for both Poonawalla and Johar as they venture into new sectors outside their traditional domains.

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