A Serum injection for KJo

Written by: Aarthi Ramnath, Aakriti Anand & Raghav Bikhchandani

A Serum injection for KJo

The context: Karan Johar’s film studio Dharma Productions is in a precarious financial position and in desperate search for investors. Its post-tax profit in FY2023 was a measly Rs 27.1 crore—dropping even further to Rs 10.7 crore in FY2024. One reason: a string of flops—from ‘Kill’ to ‘Bad Newz’. Earlier this month, music label Saregama was rumoured to be a potential suitor for a majority stake.

What happened next: A lot was riding on Dharma’s latest theatre release ‘Jigra’—which instead marked the lowest opening weekend of Alia Bhatt’s career. Rival producers claimed that the movie is running to near-empty theatres.

What happened now: Billionaire vaccine maker Adar Poonawalla has burst unexpectedly on the scene—like a B-wood hero rescuing a damsel in distress. He will put in Rs 1,000 crore ($118.9 million) for 50% of the company—which values Dharma at Rs 2,000 crore ($237.8 million). FYI: KJo owned 90.7% while his mother, Hiroo, owned 9.24%. But while he loses control of the business, he will supposedly retain “creative control.”

Poonawalla’s new avatar: Best known for manufacturing Covishield—and an absurdly lavish lifestyle—the Serum Institute of India CEO is making this investment through a new entity called Serene Productions. What’s intriguing: The company seems to have been set up just days before the deal was inked. No one knows if this marks a new phase in Poonawalla’s career. But it certainly heralds a new era for Bollywood:

The deal is potentially… good for corporatization of the Hindi movie industry which has been grappling with tough times over the past 5 years, Abneesh Roy, ED, Nuvama Institutional Equities, said. “The industry is moving out from weaker hands to financially much stronger companies.” This will hopefully improve funding for the Hindi movie industry and lead to a more sustainable pipeline in a volatile industry.

But, but, but: Johar says the cash infusion will allow the company to produce more “mid-budget films.” Or will it be more mediocre films? Many blame the blah storytelling in Hollywood on the rise of risk-averse Wall Street investors. But in the case of KJo, no one is likely to notice (yes, we be mean like that). OTOH, Adar Poonawalla’s Batmobile (it’s true!) may finally come in handy on KJo’s set. Economic Times has more on the deal. Exchange4Media has more on Serene Productions.

Who’s afraid of car emission data?

According to Mint, the government has delayed the release of emission data for eight automakers. The reason: They have failed to meet the Corporate Average Fuel Efficiency (CAFE) requirements in FY23. The eight who flunked the CAFE test: Hyundai, Kia, Mahindra & Mahindra, SkodaAuto, Volkswagen, Renault, Honda Cars, and Force Motors. The three who passed: MG Motors, Maruti Suzuki, and Tata Motors.

The carbon credit muddle: Stricter emission standards—notified back in 2015—didn’t include carbon trading or carbon credits. This when a company may offset its emissions by funding a separate project that reduces them—or buys such ‘credits’ from others. These were included in the amended Energy Conservation Act—which also slapped much higher fines for non-compliance:

For automakers like Hyundai and Kia, this means potential penalties in the hundreds of crores for just the final quarter of FY23. However, automakers argue these penalties should not apply given the Act was implemented in the middle of FY23, and the penalties were introduced only in its last quarter.

But car makers also say the laws do not set up any mechanism to earn carbon credits. And they need at least five years to get their act together.

What’s next: The government isn’t sure whether to release the report or sit on it—i.e., it doesn’t know if it wants to punish the automakers or let them off the hook… for now. Mint (paywall) has more on the emissions dilemma.

Finally: A border deal with China?

The context: In May 2020, Chinese troops crossed the Line of Actual Control (LAC) into Indian-controlled territory at Ladakh’s Lake Pangong Tso, leading to clashes with Indian troops. At the time, PM Modi sparked a political furore by denying that any border incursion by the Chinese took place (see our Big Story). Behind the scenes meanwhile, India and China held 21 rounds of military border talks over the course of two years, to little effect.

What happened now: The two sides have signed a border patrolling agreement. The external affairs minister Subrahmanyam Jaishankar says Indian troops will be able to go back to patrolling the Line of Actual Control—as it existed before 2020. China has allegedly seized 1,000 square km of Ladakh territory in the guise of setting up buffer zones:

These zones were created with the Chinese and Indian armies stepping back by an agreed and equal distance each. This allegedly left the Chinese still within India-claimed lines while Indian soldiers retreated within their own territory, prompting military veterans to accuse India of “ceding more territory” to China through these disengagement agreements.

The patrol agreement presumably involves dismantling these zones—but the details remain vague. The government says the agreement will achieve ‘disengagement’. The ‘deescalation’—pulling back thousands of troops on the border—remains to be achieved. The Telegraph and The Hindu have lots more.

23andMe faces bankruptcy, and a major data question mark

The context: Launched in 2006 by Anne Wojcicki, 23andMe creates saliva-based DNA test kits that you can use at home. Just spit in a tube, send it to the company, get a detailed history of your ancestry, genetics, health concerns, and more. The tests became super popular, and reportedly has 15 million registered users. The bad news: 23andMe’s financial health has been tailspinning since 2021. And a massive data breach in 2023 exposed the information of seven million people. This in turn required a $30 million settlement.

What happened now: Wojcicki’s company is on the verge of bankruptcy, with its valuation down 99% from the peak of $6 billion. She wanted to take the company private last year—but also said she is open to “third-party takeover proposals.” This spooked 23andMe’s board members, who have now resigned.

The really scary bit: The company still has the data of 15 million people, and there’s very little clarity on what happens to it:

[I]f 23andMe faces a sale, the data of millions of Americans is also on the table. The company’s privacy policy says that its customers’ personal information “may be accessed, sold or transferred” as part of a bankruptcy, merger, acquisition, reorganisation, or sale.

Users have no way to protect themselves. Deleting their account will not erase their genetic data—which will remain with the company. And 80% of the users have signed a consent form—allowing 23andMe to use it for medical research. The most likely buyers of this data: Pharma companies.

TechCrunch has more on this nightmare. Business Insider has a detailed timeline of the fall of 23andMe. Mint has more on India’s $60.78 million burgeoning genetic diagnostic market.

The astronomical cost of giving up coal

A new study reveals that India will need over $1 trillion over the next 30 years to end its reliance on coal mining and thermal power plants. That’s the cost of shutting down mines that produce 1,315 million tonnes each year—while coal-based energy plants generate 237.2 gigawatts. And this doesn’t include the costs of setting up green energy sources either. Reminder: India is the world’s second-largest producer of coal in the world. It powers over 70% of the country’s electricity. This explains why New Delhi has not signed the global pledge to give up coal. (Indian Express)

Breakdancers, beware the cone-head!

Breakdancing is a hazardous sport that can leave a person paralysed. A newly published case report shows that it can also lead to a “cone-head”—caused by repetitive headspins:

The repeated trauma from head-spinning causes the epicranial aponeurosis — a layer of connective tissue similar to a tendon, running from the back of your head to the front — to thicken along with the layer of fat under the skin on top of the head in an attempt to protect the bones of skull from injury.

This is what the patient—a Danish man who had been head-spinning for 19 years—looked like before and after his surgery:

The good news: The condition is not painful. The Guardian has more on the study. The Conversation also has a tidbit on newborns and their cone heads—which is more prevalent in boys.

what caught our eye

business & tech

Twitch revealed it has quietly blocked users in Israel and Palestine from creating new accounts since October 7.
Wall Street Journal (splainer gift link) has a must-read on how ‘Industry’—the hit show on JioCinema—has actual bankers spotting “typos in spreadsheets” and bemused over “bank failure over ‘ESG’ investing”.
In bad news for Google, its search engine rival—the AI-driven Perplexity—is headed for a funding round of $1 billion—which could double its valuation to $8 billion.

sports & entertainment

Another day, another series of disturbing lawsuits against Diddy—this time, they feature an allegation that he drugged and raped a 13-year-old girl.
Himal Magazine has a must-read by Anna MM Vetticad on the politics of Payal Kapadia’s ‘All We Imagine as Light’—which premiered at Mumbai’s MAMI Film Festival on Friday.
Over 100 women’s footballers have signed a letter calling on FIFA to end its sponsorship deal with Saudi Arabia’s Aramco, citing the country’s human rights violations.

as for the rest

Believe it or not: The US election is still tied! Donald Trump has erased Kamala Harris’ lead in swing states. Incredible America!
Indonesia’s got a new president—Prabowo Subianto—who has sworn in the country’s largest cabinet since 1966. It has 109 members!
The WHO will evacuate 1,000 women and children from Gaza for urgent medical care.
Hamas chief Yahya Sinwar—killed by Israel last week—will be replaced by a committee—with members from the West Bank and Gaza—who are all safely ensconced in Qatar.
An update on the RG Kar rape and murder case (See: our Big Story)—protesting junior doctors have called off their two-week long hunger strike after a meeting with Mamata Banerjee, in which they agreed to set up a task force by March 2025.
No husband? Sorry, no pap smears! Times of India looks at enraging obstacles faced by unmarried women at Chennai’s diagnostic centres.
NewsLaundry has an illuminating read on the challenges of being an Indian journalist—focused on three ‘case studies’.
Related: The Telegraph has a must-read on state repression of the media in Jammu and Kashmir.
Also in The Telegraph: the incarceration of Umar Khalid—which has lasted more than 1,500 days, with no hope for bail.

Two things to see

One: Charles and Camilla’s Australia junket was disrupted by Senator Lidia Thorpe—who yelled at them during a ceremony in Canberra—accusing the royal family of stealing indigenous land—which is, well, true. (Associated Press)

Two: ECR beach in Namma Chennai glowed blue with bioluminescence on Saturday. The effect—produced by fish, bacteria, and plankton—is harmless and likely caused by heavy rains. But, but, but:

[E]nvironmental activists have raised concerns that large blooms could potentially reduce oxygen levels in the water, affecting marine life. They also noted that increased pollution in coastal areas could be a factor in the frequency of such events.

Economic Times has more on that angle.