Karan Johar reveals why he sold 50% stake in Dharma, says margins on films like Brahmastra are high: ‘Real money is in middle-budget movies’

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Karan explained, “So, adjacent erstwhile we made large hits, we were ever sharing the profits. In this scenario, it gives america the accidental of expanding and enhancing our profitability, and owning the movie entirely. Yes, determination volition beryllium those monolithic Brahmastras that we volition marque that volition request the enactment of a studio. If I marque a movie that is implicit Rs 250 crore oregon Rs 300 crore, it’s not imaginable to money that wholly astatine our signifier adjacent now.”

But, Karan said, his extremity is to nutrient overmuch smaller films. “It’s the middle-budget film, wherever the outgo to nett is ace high. Those are the films that you tin money wholly connected your own, and you tin bask and reap the benefits of the large breakthrough profits. I judge the existent breadstuff and butter, the existent wealth comes from middle-budget film.”

Karan said that with large films, the travel to betterment is often agelong and the margins aren’t precise large. “But erstwhile you marque a movie successful the Rs 65 crore to Rs 80 crore model and you truly deed a ample number, that is the movie I’m chasing. More than the structure rod film, I’m chasing the middle-budget movie that gives maine the larger return. Everybody thinks bigger the film, bigger the wealth made, but that’s not true.”

A mates of years ago, Dharma co-produced Ayan Mukerji’s Brahmastra, which grossed astir Rs 420 crore against a fund of astir Rs 400 crore. He has besides been producing smaller-budget films specified arsenic JugJugg Jeeyo and Bad Newz.