India pharma tycoon injects $119M into studio behind top Bollywood hits

Indian pharmaceutical tycoon Adar Poonawalla has invested $119 million into one of Bollywood's biggest production companies, a boost to a film industry that has suffered from waning audience interest.

The deal gives Poonawalla's Serene Production a 50-percent stake in Dharma Productions, the producer and distributor of some of India's biggest movie blockbusters.

Prolific filmmaker and talk show host Karan Johar, whose father founded the production company in the 1970s, will retain the remaining share and serve as executive chairman.

"I am delighted to have the opportunity to partner with one of the most iconic production houses in our nation," Poonawalla said in a press release on Monday.

"We hope to build and grow Dharma and scale even greater heights in the years to come."

Dharma has produced some of Bollywood's most beloved films since its founding including "Kuch Kuch Hota Hai" (Something is Happening), a popular rom-com featuring 1990s heart-throb Shah Rukh Khan.

"Dharma Productions has been synonymous with heartfelt storytelling that captures the essence of Indian culture," Johar said.

"This partnership represents a perfect blend of our emotional storytelling prowess and forward-thinking business strategies."

'Cash-rich'

A Dharma press release said the equity deal was aimed at "embracing new formats and platforms" to satisfy demand for digital content for Indian consumers.

Streaming platform audiences have grown rapidly in India - a development that has imperilled traditional movie production houses struggling to retain eyeballs against fierce competition.

Elara Capital has estimated an on-year decline of up to 35 percent in India's overall box office ticket sales for the first six months of 2024.

Dharma saw its on-year consolidated revenues fall by half in the 2023-24 financial year to $60.9 million, according to the Economic Times.

Film trade analyst Komal Nahta said the deal represented the "biggest ever inflow of funds by one person" into India's film business.

"For Dharma, specifically, it means it's now so cash-rich that it doesn't need to go signing deals for financing its films each time the company wants to greenlight a project," he added.

Poonawalla is chief executive of the Serum Institute of India, founded by his billionaire father Cyrus and currently the world's largest vaccine-maker by output.