I think it is a little complicated then just love for Alia.
KJo made his debut with SRK, Kajol and Rani(except Rani who was new, SRK and Kajol were riding on the DDLJ wave) SRK was a star and did KJo films for his father so both he and KJO were not in equal terms. Though him and Kajol were friends, Kajol does not need him and we have seen her that with Ajay
Before that he was an AD to Aditya Chopra who is a mentor to him and Rani being married to him does not put him on an equal footing.
These people gave him his success but he will always be in a back foot with him. Though him and Kareena were friends after K3G, Kareena still said no to him for KNHH.
I think he was in a space where he wanted to have a talent management company or a god like complex.
That is when he had directors and writers working for him. Some sticked with him and some didn't like a Nikhil Advani. I think he wanted to have a company that makes careers both from directors and writers. Cut to Ayan, Shakun who only write and direct for Dharma. He wanted that for actors as well so he produced SOTY and though all 3 respected him, Varun had his dad and as much as Sid shows that he is very polite he may not listen to everything that Karan says. Cut to Alia who was very young and though she did not shine in his film. She did Highway and that showed him that she may not be exceptional but with author backed roles and a great pr strategy he can make her huge which he did.
Alia is good, but she doesn't have the x factor when you pitch her in a small role or bad stories , example Kalank,RRR or Brahmastra or even a Darlings where she was good but Shefali and Vijay stole the show
Alia will always be remembered that she made it because of KJO and that is what makes KJO happy. You can see that many actors are also sucking up to him. Jhanvi, Ananya, even a Sara etc and that would definitely be helpful for someone like KJO.
Maybe he does genuinely like her but I find it fascinating that he is curating her career where her name and fame will always be entwined with KJO.
A kingmaker like status is what KJO wants and he got it with Alia
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