Has Adar Poonawalla hit bull’s eye with Dharma Productions acquisition?

In a move that reaffirmed India Inc.’s growing interest in the entertainment business, Serum Institute of India’s CEO Adar Poonawalla acquired a 50 percent stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment for Rs 1,000 crore.
The acquisition, executed through Poonawalla’s Serene Productions, comes at a crucial juncture for Bollywood and could herald a new era of corporate investments.
Under the binding agreement announced on Monday, Karan Johar will retain the remaining 50 percent ownership, continuing his role as Executive Chairman while Apoorva Mehta will stay on as Chief Executive Officer.
Industry experts suggest the timing of this acquisition could prove masterful.
Producer and Film Business Expert Girish Johar describes it as a “very smart move” from Poonawalla’s perspective. “I think he’s hit the bull’s eye at the right time,” Johar said.
“Whenever big leaders want to acquire or diversify, they always take a very strategic time,” he told Indiatoday.in.
“Currently, the Hindi film fraternity is probably at its lowest in terms of regular releases, with lack of calendar releases and dwindling revenues across theatrical box office, satellite, and digital platforms,” said Johar.
This apparent downturn, however, might be precisely what makes the timing optimal.
“From 2025 onwards, early 2026, we are expecting a resurgence. We are expecting the box office to be back,” Johar predicts. “After a churn, after a correction in prices, cost, everything, there is bound to be a revival. That’s the cycle.”
Film trade analyst Taran Adarsh provided context for the current market conditions and told India Today Digital, “This year we had only one 500-plus crore film compared to last year when we had Pathaan, Jawan, Animal, and Gadar – four 500 crore films.”
However, he remains optimistic about the future, and said, “Obviously, you feel the vacuum. But hopefully, picture abhi baki hai (there’s a lot more to come), 2025 will be huge.”
The investment comes at a crucial time for Dharma Productions, which has faced challenges with its recent releases.
“The last few Fridays have not been too good for Dharma, including Jigra,” acknowledges Adarsh.
The last film that produced good numbers and had Dharma at its helm was Rocky Aur Rani Kii Prem Kahaani (2023), which did a business of over Rs 350 crore.
However, he puts this in perspective: “Hits and flops are part of everyone’s life. The biggest of stars – I have seen Amitabh Bachchan’s era in the 1970s – even they went through a lull phase.”
For Dharma, the capital influx represents more than just financial reinforcement.
“It’s going to be a major lift for Dharma,” says Adarsh. “Now Dharma has got fresh funds, a great investor, and at the same time, the creative decisions rest with Karan and Apoorva.”
Girish Johar highlights how this partnership frees the creative team to focus on content development.
“The team led by Karan can be solely focused on creation and content creation. Indian content is being accepted all over the world, so you can focus on creating IPs that resonate not only with Indian audiences but also with the Indian diaspora and global audiences.”
From Poonawalla’s perspective, the investment represents a strategic diversification into India’s growing entertainment sector, the experts said.
“Being from India, he knows the global might that India has,” explains Johar. “He’s one of the pioneering leaders in the healthcare medicine industry and has seen what respect it commands at the global level. Similarly, content creation in the Indian market definitely has huge potential in the global market.”
The timing aligns with India’s growing soft power in the entertainment sector. “Indian content is a very good soft global power,” Johar notes, “and it has been recognised all over the globe. With consolidation happening within the industry, this is a very strategic and timely step.”
Both experts suggest this deal could catalyse more corporate investment in Bollywood. “It will bring a lot more transparency within the film industry,” says Adarsh, who anticipates this could be “just the beginning of a better time for Dharma.”
The investment is expected to enable grander productions. “With fresh funds coming in, we are looking at bigger cinema in terms of theatrical experience,” Adarsh explains.
“More investors would be attracted to the film industry. Of course, it would not happen overnight – it would happen with the passage of time, looking at the results,” he added.
The partnership between Poonawalla’s global business acumen and Dharma’s creative legacy appears well-timed for the industry’s next phase.
“With Adar’s intuition and experience of global platforms, I think it’s a brilliant mix,” said Johar.
As the industry prepares for what experts predict will be a strong revival in 2025-26, this strategic investment could position Dharma Productions at the forefront of Indian cinema’s next evolution.
“Expect some big announcements in the coming weeks or months,” hints Adarsh, suggesting this may be just the beginning of a new chapter in Bollywood.
Founded in 1976 by Yash Johar and now run by his son Karan Johar, Dharma Productions has been a cornerstone of Hindi cinema. The addition of Dharmatic Entertainment in 2018 expanded the company’s reach into digital content, positioning it for the streaming era.