From NBFC to entertainment: Adar Poonawalla’s big bets in the last few years #CashNews.co

Adar Poonawalla, CEO of Serum Institute of India, has made a striking entry into the entertainment industry by acquiring a 50% stake in Karan Johar’s Dharma Productions and its digital arm, Dharmatic Entertainment. The deal, valued at ₹1,000 crore, marks Poonawalla’s latest move to diversify his business interests beyond pharmaceuticals.

In a statement, Poonawalla expressed optimism about the partnership, saying, “We hope to build and grow Dharma and scale even greater heights in the years to come.” The acquisition positions Poonawalla’s Serene Productions as a significant player in India’s film industry while leveraging Johar’s creative expertise to produce blockbuster films and web series.

Dharma Productions is renowned for its box office hits and popular digital content, and this partnership signals a new era of collaboration between two business powerhouses—Poonawalla with his financial acumen and Johar with his established entertainment credentials.

Expanding beyond pharmaceuticals

Poonawalla’s foray into entertainment is the latest in a series of strategic investments aimed at diversifying his portfolio across multiple industries. In April 2023, Poonawalla doubled his investment in Biocon Biologics, committing an additional $150 million, bringing his total investment to $300 million. The move boosted Biocon’s efforts to develop affordable healthcare solutions, which are in line with Poonawalla’s vision of making healthcare accessible on a global scale.

Before that, in May 2021, Poonawalla’s Rising Sun Holdings (RSH) acquired a controlling 60% stake in Magma Fincorp for ₹3,456 crore. The company has since been rebranded as Poonawalla Fincorp, marking a significant entry into the non-banking finance sector.

Global expansion

Poonawalla’s strategic acquisitions extend beyond India. In 2012, Serum Institute made its first overseas acquisition by purchasing Dutch polio vaccine-maker Bilthoven Biologicals for ₹550 crore. This deal gave Serum a manufacturing base in Europe and better access to European and US markets.

Most notably, in 2013, it paved the way for Serum to launch its oral polio vaccine, which became a bestseller and significantly expanded the company’s vaccine portfolio.

In 2017, the Serum Institute of India acquired an old Baxter flu vaccine plant in the Czech Republic through Nanotherapeutics to turn it into the largest injectable polio vaccine manufacturing unit by 2020.

Poonawalla’s recent acquisition of Dharma Productions showcases his ambition to diversify into new sectors and his ability to make transformative moves across industries. From his dominance in vaccines and healthcare to his bold entry into entertainment, Poonawalla continues to build a legacy that goes well beyond the pharmaceutical world.