In the 1950s, Sashadhar formed his own production house called Filmalaya in Andheri, near Amboli. He also ran an acting school and was instrumental in giving actresses like Asha Parekh and Sadhana a break in films. Sanjeev Kumar was also a product of Filmalaya Acting school. Nasir Hussain was a director involved with his productions as were R. K. Nayyar and Gyan Mukherjee; music director O. P. Nayyar was also associated with his solo productions. He launched his son Joy with the film "Love in Simla" (1960); he also produced films like "Ek Musafir Ek Hasina" to further his son's career. When Dilip Kumar wanted to make a film on corrupt politicians he came to Mukherjee and made "Leader". Sambandh was his last production, though it was produced by his cousin Ram Mukherjee. Sashadhar Mukherjee died on 3 November 1990.