Karan Johar breaks silence on selling 50 per cent of Dharma Productions to Adar Poonawalla for Rs 1000 crore: 'I needed funds to grow'

In 2024, Karan Johar made headlines when he sold a 50 percent stake of his production company, Dharma Productions, to Serum Institute of India CEO Adar Poonawalla for a staggering Rs 1,000 crore. In a recent conversation with Raj Shamani, the filmmaker opened up about the motivation behind the move, citing the need for growth and long-term expansion.

Inherited his father Yash Johar’s reputation, not financial security

Speaking about the evolution of Dharma Productions, Karan admitted that while his father Yash Johar founded the company, its success only began post-1998 with his directorial debut Kuch Kuch Hota Hai. “Before Kuch Kuch Hota Hai, we had five flops in a row. What I inherited from my father was goodwill, not money,” Karan shared, highlighting how the emotional and reputational legacy of his father fueled his journey, not a financial head start.

Karan also reflected on the earlier collaborative model of filmmaking at Dharma, revealing that most profits had to be shared with partners. “We couldn’t finance films on our own ability, so our biggest hits had partners. But I wanted profitability to stay within Dharma. That’s when I stopped doing collaborative projects,” he said.

Post-1998, hits like Kabhi Khushi Kabhie Gham, Kal Ho Naa Ho, and Kabhi Alvida Naa Kehna turned the tide for Dharma Productions. But it wasn’t an easy journey. After the death of his father in 2004, Karan leaned on his childhood friend and current CEO of Dharma, Apoorva Mehta. “He left his life in London overnight to help me. Till date, I have zero business acumen, but a strong instinct. Apoorva handles the business, I handle the creative,” Karan added.

Strategic partnership with Adar Poonawalla

Explaining why he brought Adar Poonawalla on board as an equity partner, Karan said, “In 2023, we realised we had to scale. Organic growth would have taken us 5–7 more years. We needed capital. Today, I’m very happy with Adar. He’s a wonderful human being with sharp instincts. Now I feel accountable—this is someone else’s money. I have to deliver success.”

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Karan also addressed criticisms that Dharma didn’t have a particularly profitable 2024. “Kill was critically appreciated, Mr & Mrs Mahi made money, Bad Newz was profitable, Jigra broke even. We’re now producing our first Punjabi film Akaal, and Dhadak 2 is coming soon. We’re bullish,” he asserted.

Reflecting on the highs and lows of showbiz, Karan concluded with characteristic candour: “I don’t take success seriously or failure to heart. I don’t mind a flop. I just don’t like average films. If I’m wrong, tell me—I’ll learn and move forward.”