Universal Music India just snagged a 30 percent stake in Excel Entertainment. This move is all about tapping into India’s booming entertainment scene and connecting local films with global music.
Universal Music India has made a significant investment by acquiring a 30 percent minority stake in Excel Entertainment, a leading production company based in Mumbai. The deal, valued at ₹2,400 crore (approximately $290 million), was officially announced on Monday. This partnership marks a strategic alliance aimed at enhancing Excel’s growth while solidifying Universal Music Group’s (UMG) foothold in India’s rapidly expanding entertainment market.
As part of this agreement, UMG will gain global distribution rights for all future original soundtracks tied to projects produced or controlled by Excel. Additionally, the companies plan to launch a dedicated music label that will be distributed worldwide by UMG. Universal Music Publishing Group will also become Excel’s exclusive publishing partner, creating opportunities for UMG and Universal Music India artists to feature in Excel’s film and series projects.
Excel CEO Vishal Ramchandani expressed enthusiasm about the partnership, stating that it represents a pivotal step in broadening creative opportunities for Indian stories on a global scale. He emphasized a shared vision for innovation and excellence, aiming to transform Excel into a globally recognized creative studio that delivers original content across various platforms.
Founders Ritesh Sidhwani and Farhan Akhtar, who have been at the helm since Excel’s inception in 1999, view this alliance as a chance to leverage international collaboration amidst India’s booming content industries. Through this partnership, UMG will also secure a position on Excel’s board, with Devraj Sanyal, chairman and CEO of Universal Music India & South Asia, taking a seat.
UMG executives believe this strategic move places them at the forefront of Excel’s development pipeline, particularly in music-driven projects within a market where film soundtracks hold significant cultural importance and replay value. Adam Granite, CEO of UMG’s Africa, Middle East and Asia division, noted that original soundtracks are vital to India’s fast-growing music sector. By investing in Excel, UMG aims to contribute from the ground up and enhance the creative process, resulting in benefits for both entities.
Excel Entertainment has become one of India’s most successful production houses since its breakout hit “Dil Chahta Hai” in 2001. The company has produced various notable films and streaming series, including “Don,” “Zindagi Na Milegi Dobara,” “Inside Edge,” and “Mirzapur,” garnering both commercial success and recognition at prestigious film festivals.
The investment comes at a time when India is witnessing substantial growth in its music market, being the 15th largest globally. The strong connection between film content and soundtrack performance is evident, supported by a large base of over 375 million OTT viewers and approximately 650 million smartphone users in the country. This partnership aims to create new revenue streams and cross-platform opportunities, expanding the global reach of Indian narratives and artists.
Financial advisors for Excel included Morgan Stanley, while UMG’s legal counsel was provided by AZB & Partners and Khaitan & Co for Excel. Ernst & Young and KPMG served as transaction advisors for the deal.
Both parties have indicated that further details regarding the new Excel music label and upcoming soundtracks will be announced in the forthcoming months.