The producer indicated that the team behind the film decided to make a follow-up due to strong public demand.
"You have seen Don - The Chase Begins, the character became iconic. People somehow realised that being mean and bad is cool," Sidhwani said.
"I think Shah Rukh and Don gives bad a new look and people wanted more of the character. We never thought about making a sequel but I think, when people saw the film, they appreciated it and they liked it. They wanted more... and we thought, 'Why not?'"
Like the original film, a German-language dubbed version of the sequel will also premiere at the Berlin Film Festival.
"We were planning to release all over the world including Germany on the same day. But unfortunately, because we got selected at the Berlinale, we have to release the dubbed version then as they wanted us to have the release later," added Sidhwani.
"I think it's great that we are taking the film there. The German distributors decided on doing so."
Actor Priyanka Chopra said last week: "Whenever we travel abroad people have so much interest in Indian movies. Don 2 was shot in Berlin and we have so many people who obviously don't speak Hindi so excited about the movie."
Don 2 will be released on December 23.