Key Takeaways
- Universal Music India has acquired a 30% equity stake in Excel Entertainment, a leading Bollywood production house, valuing the company at INR2,400 crores ($267 million)
- The partnership grants Universal Music Group (UMG) global distribution rights for all future original soundtracks from Excel’s projects
- UMG will launch a dedicated Excel music label with global distribution, and Universal Music Publishing Group will become Excel’s exclusive music publishing partner
- The deal strengthens UMG’s position in India, currently the world’s 15th-largest recorded music market by revenue, and provides opportunities for UMG’s existing artist roster to be featured in Excel’s future productions
Introduction to the Partnership
Universal Music Group’s Indian division has secured a significant minority stake in one of Bollywood’s leading production houses, Excel Entertainment, gaining global soundtrack rights in the process. This strategic partnership was confirmed on Monday, with Universal Music India entering into a definitive agreement to acquire a 30% equity stake in Excel Entertainment, valuing the Mumbai-based film and digital content studio at INR2,400 crores ($267 million). The partnership grants UMG global distribution rights for all future original soundtracks from Excel’s projects, providing a significant opportunity for the company to expand its presence in the Indian music market.
Excel Entertainment’s Background and Success
Excel Entertainment has established itself as a major force in Indian cinema and streaming content since its founding in 1999 by producers Ritesh Sidhwani and Farhan Akhtar. The studio’s slate includes critically acclaimed titles such as "Gully Boy" (India’s 2019 Academy Awards submission), "Zindagi Na Milegi Dobara," and "Dil Chahta Hai," as well as Prime Video’s Emmy-nominated series "Inside Edge" and popular shows "Mirzapur" and "Made in Heaven." Excel Entertainment’s success in the Indian entertainment industry has made it an attractive partner for UMG, which is seeking to expand its presence in the region.
Terms of the Agreement
Under the agreement, UMG will launch a dedicated Excel music label with global distribution, while Universal Music Publishing Group will become Excel’s exclusive music publishing partner. This arrangement creates opportunities for UMG’s existing artist roster to be featured in Excel’s future productions, providing a significant boost to the company’s music business in India. Devraj Sanyal, chairman and CEO of Universal Music India and South Asia and senior VP of strategy for Africa, Middle East and Asia, will join Excel Entertainment’s board of directors, while Sidhwani and Akhtar will continue overseeing creative direction and content decisions.
Reaction to the Partnership
The partnership has been welcomed by both parties, with Sidhwani and Akhtar stating that "India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations." Vishal Ramchandani, Excel Entertainment’s CEO, added that "this partnership with UMG marks a pivotal step in our journey to broaden creative opportunities and tell Indian stories with a global lens." Adam Granite, UMG’s CEO of Africa, Middle East and Asia, said that "today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally."
Impact on the Indian Music Market
The deal strengthens UMG’s position in India, currently the world’s 15th-largest recorded music market by revenue according to IFPI data. Original soundtracks remain central to India’s music consumption, with the genre showing continued growth among local listeners. The partnership with Excel Entertainment provides UMG with a significant opportunity to expand its presence in the Indian music market, and to contribute to the growth of the music-led entertainment business in the region. With more than 375 million over-the-top viewers and 650 million smartphone users consuming content across multiple platforms, India’s digital entertainment sector presents significant growth opportunities for UMG.
Conclusion and Future Prospects
In conclusion, the partnership between Universal Music India and Excel Entertainment is a significant development in the Indian music market, providing opportunities for both parties to expand their presence in the region. With the launch of a dedicated Excel music label with global distribution, and Universal Music Publishing Group becoming Excel’s exclusive music publishing partner, the partnership is expected to contribute to the growth of the music-led entertainment business in India. As the Indian entertainment landscape continues to grow from strength to strength, the partnership between UMG and Excel Entertainment is well-positioned to capitalize on the opportunities presented by the region’s rapidly expanding digital entertainment sector.
