Karan Johar Reveals Reason For Selling 50 Stake In Dharma Productions

Karan Johar recently disclosed the actual reason for selling 50% of Dharma Productions to Adar Poonawalla, CEO of Serum Institute of India, in a Rs. 1000 crore deal. Speaking at the CNBC-TV18 Global Leadership Summit, Johar cited funding issues for bigger films as the primary reason. He stated that partnering with studios for large projects resulted in shared profits.

Johar explained, "At our stage, it's not possible to fund a Rs. 250-300 crore movie... This partnership enables us to increase profitability and own the film entirely." He also highlighted the potential of mid-budget films, saying, "The real money comes from middle-budget films worth Rs. 65-80 crore, where the cost-to-profit ratio is super high."

Johar emphasized his friendship with Adar Poonawalla, calling their partnership a "marriage of two minds" that combines business acumen with creative vision. Poonawalla expressed surprise at the partnership opportunity, seeing it as a lucrative business venture, especially in music distribution and content creation.

Contrary to speculation about financial struggles, Johar's revelation sheds light on the strategic decision to secure funding for ambitious projects.