Reliance Industries (RIL) is in talks to acquire a stake in Bollywood producer and director Karan Johar's Dharma Productions, said people familiar with the matter. A deal will strengthen the oil-to-telecom conglomerate’s position in the Indian content production industry. The size of stake on the table could not be ascertained.

“Karan Johar has been looking to monetize his stake in Dharma for some time, but past deals have fallen through due to disagreements over valuation,” said a person familiar with previous negotiations, requesting anonymity.

Dharma is owned 90.7% by Karan Johar and 9.24% by his mother, Hiroo. It has produced a large number of popular Bollywood firms.

Dharma Productions’ pursuit of strategic partnerships underscores the broader financial challenges facing the Hindi film industry, including rising production costs, declining theatre attendance and shifting consumer choices due to the growing popularity of over-the-top (OTT) platforms.

“In the past, RIL acquired a minority stake in Balaji. A similar arrangement could be made with Dharma,” said a second person. A potential stake purchase would boost Reliance’s content production portfolio, which currently includes Jio Studios, Viacom18 Studios, Colosceum Media and a minority stake in Balaji.