Universal Music Group just dropped $80 million to partner up with Excel Entertainment in a major Bollywood play. This move solidifies their foothold in India’s booming entertainment sector.
Universal Music Group (UMG) is making waves in the Indian entertainment market with a hefty investment of $80 million for a 30% stake in Excel Entertainment Pvt., one of India’s leading Bollywood production houses. The announcement, made on Monday, outlines a collaborative effort on upcoming films, series, music, and other emerging formats between the two companies.
As part of the agreement, Universal Music India will gain global distribution rights for all original soundtracks tied to projects produced or owned by Excel. Additionally, there are plans to establish a music label associated with Excel, aimed at featuring UMG and Universal Music India artists in various Excel productions.
This investment highlights the rapid expansion of the Indian entertainment industry, which is currently the 15th-largest recorded music market globally. Collaborating with a well-established production company like Excel positions Universal Music to tap into a thriving segment of the market.
Founded in 1999 by renowned producers Ritesh Sidhwani and Farhan Akhtar, Excel Entertainment has created a strong portfolio, producing over 40 films and scripted shows. Among its notable works are box office hits such as “Dil Chahta Hai,” “Don,” and “Talaash.” The company currently holds an estimated valuation of around $290 million.
In a joint statement, Sidhwani and Akhtar expressed their enthusiasm for the partnership, stating, “India’s entertainment sector continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations. Together, we aim to take culturally rooted stories to the world.”
UMG, headquartered in the Netherlands with a significant presence in Santa Monica, was founded in 1996. The music giant has a diverse roster of artists, including superstars like Taylor Swift and Billie Eilish, and boasts a market valuation of approximately $48 billion, with shares trading around $25.80.