Reliance Industries Limited (RIL) is reportedly in advanced talks to acquire a stake in Karan Johar’s Dharma Productions, a move that could further strengthen RIL’s position in the Indian content production market.
According to The Economic Times, the negotiations indicate that the size of the stake remains undisclosed, but such a deal would align with RIL’s previous acquisition strategy in the entertainment sector.
Karan Johar, who owns 90.7 percent of Dharma, has been exploring ways to monetize his stake for some time. Past deals, however, stalled due to disagreements over valuation.
The company, co-owned by Johar’s mother Hiroo Johar, is facing financial pressures common across the Hindi film industry, including increasing production costs, reduced theatre attendance, and the growing dominance of over-the-top (OTT) platforms.
If successful, the deal could mirror RIL’s prior investment in Balaji Telefilms and would add to Reliance’s robust content production portfolio, which already includes Jio Studios, Viacom18 Studios, and a minority stake in ‘Balaji’. Jio Studios recently became the largest film studio in India, recording ₹700 crore in box office collections in FY24, bolstered by hits like ‘Stree 2’.
Both RIL and Dharma Productions have declined to comment on the ongoing discussions.
Key Highlights:
- RIL in Talks for Dharma Productions Stake: Reliance Industries Limited (RIL) is in advanced discussions to acquire a stake in Karan Johar’s Dharma Productions, with details on the stake size still undisclosed.
- Dharma Productions Financial Pressures: Karan Johar, who owns 90.7% of Dharma, has been seeking ways to monetize his stake amidst rising production costs and industry challenges, including reduced theatre attendance and OTT competition.
- Strengthening RIL’s Content Portfolio: The deal would further bolster RIL’s entertainment assets, aligning with its past investments like in Balaji Telefilms and enhancing its content production capabilities through Jio Studios and Viacom18 Studios.