Dharmatic Entertainment amalgamates with Dharma Productions
Dharmatic Entertainment amalgamates with
Dharma Productions
Veteran filmmaker Karan Johar’s Dharma Productions is consolidating its operations by merging its digital arm, Dharmatic Entertainment, into the parent company, effective April 1, 2025. This strategic move, following a major investment from Adar Poonawalla, aims to streamline the group structure, reduce overheads, and enhance efficiency in an evolving entertainment landscape. Dharmatic, a wholly-owned subsidiary, focused on creating content for streaming platforms.
Reportedly, Dharmatic Entertainment Productions, has amalgamated into its parent company Dharma Productions as part of the Bollywood powerhouse’s strategy to consolidate operations in the midst of transforming entertainment landscape.
As per company filings, the fast-track merger application, filed with regulatory authorities, has received approval from shareholders and creditors of both companies.
It’s the very first significant move by Dharma Productions following the sale of a 50% stake to entrepreneur Adar Poonawalla for
Rs 1,000 crore last year, valuing the company at Rs 2,000 crore.
The consolidation, effective April 1, 2025, is aimed at streamlining the group structure by trimming the number of entities, cutting administrative overheads, and simplifying legal compliance.
With Dharmatic already wholly owned by Dharma, the amalgamation does not entail any financial consideration. The existing holding of Dharma Productions in Dharmatic will stand extinguished due to the merger.
According to company official, Dharmatic was envisioned as a digital-first creative studio, but the industry has evolved in ways that make integrated operations more impactful. This merger allows them to optimise resources and run a leaner, more efficient organisation while continuing to tell powerful stories across platforms.
Dharmatic Entertainment was floated in 2018 as a content studio focussed on creating fiction and non-fiction content for streaming platforms. It has produced shows like Fabulous Lives vs Bollywood and Koffee with Karan for OTT platforms Netflix and JioHotstar.
News Edit KV Raman
