Key Takeaways:
- Universal Music Group (UMG) has acquired a 30% stake in Indian film and digital content studio Excel Entertainment, valuing the company at approximately $257 million.
- The deal gives UMG global distribution rights for all of Excel’s original soundtracks and includes the launch of a new Excel record label.
- UMG’s chairman/CEO of Universal Music India & South Asia, Devraj Sanyal, will join Excel’s board of directors, while Excel’s founders Ritesh Sidhwani and Farhan Akhtar will remain in charge of content and creative direction.
- The partnership aims to take culturally rooted stories to a global audience and unlock fresh opportunities for artists and repertoire across music, film, and emerging formats.
Introduction to the Deal
The Universal Music Group has started the year 2026 with a significant investment in the Indian market. The company’s subsidiary, Universal Music India, has acquired a 30% stake in Excel Entertainment, a prominent Indian film and digital content studio. The deal values Excel Entertainment at approximately $257 million, with UMG’s investment amounting to around $77 million. This partnership is expected to have a significant impact on the Indian music and entertainment industry, and it marks another major foray into the Indian market for the U.S.-based music business.
Partnership Details
The deal between UMG and Excel Entertainment includes several key components. UMG will have global distribution rights for all of Excel’s original soundtracks, including those created for Excel’s popular musical drama projects. Additionally, the partnership will involve the launch of a new Excel record label, which will be dedicated to promoting Indian music and artists globally. Universal Music Publishing Group will also become Excel’s global exclusive publishing partner, providing the company with access to a vast network of songwriters, producers, and other industry professionals. Furthermore, UMG’s chairman/CEO of Universal Music India & South Asia, Devraj Sanyal, will join Excel’s board of directors, while Excel’s founders Ritesh Sidhwani and Farhan Akhtar will remain in charge of content and creative direction.
Reaction from Key Stakeholders
The founders of Excel Entertainment, Ritesh Sidhwani and Farhan Akhtar, have expressed their excitement about the partnership with UMG. In a joint statement, they noted that the deal marks a "perfect moment to build meaningful global collaborations" and that they are "excited to partner with UMG in what we believe will be a truly creative and transformative alliance." They also emphasized their commitment to taking "culturally rooted stories to the world" and unlocking fresh opportunities for artists and repertoire across music, film, and emerging formats. Vishal Ramchandani, Excel’s CEO, added that the partnership with UMG marks a pivotal step in the company’s journey to broaden creative opportunities and tell Indian stories with a global lens.
UMG’s Expansion in India
The deal between UMG and Excel Entertainment is not the first time that the U.S.-based music business has invested in the Indian market. In recent years, UMG has increasingly turned its attention to the fast-rising subcontinent, recognizing the vast potential for growth in the Indian music and entertainment industry. Last February, Republic Records launched a joint venture with Savan Kotecha to find the next Indian pop boy band, while Warner Music’s Canadian and Indian operations founded a joint-venture label called 91 North Records in 2022. Additionally, HYBE announced it was exporting its K-pop model to India in July. These investments demonstrate the growing interest in the Indian market among major music companies, and UMG’s partnership with Excel Entertainment is a significant step in this direction.
Growth Potential in India
India is the world’s largest population, but it is only the 15th-biggest recorded music market in the world, according to IFPI’s latest figures. This suggests that there is plenty of room for growth in the industry, and UMG’s partnership with Excel Entertainment is well-positioned to tap into this potential. The Indian film scene presents a hugely exciting opportunity for music and the music-led entertainment business, and Excel is the perfect partner for UMG to work with going forward. Adam Granite, UMG’s CEO of Africa, Middle East and Asia, noted that "today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally." He also emphasized that original soundtracks remain at the heart of India’s fast-growing music market, with Indian listeners showing a growing desire to access more music in that genre.
Conclusion
The partnership between UMG and Excel Entertainment is a significant development in the Indian music and entertainment industry. With UMG’s global distribution rights, exclusive publishing partnership, and launch of a new record label, Excel Entertainment is well-positioned to take Indian music and stories to a global audience. The deal also marks another major foray into the Indian market for UMG, demonstrating the company’s commitment to investing in the fast-rising subcontinent. As the Indian music and entertainment industry continues to grow, it will be exciting to see the impact of this partnership and the opportunities it creates for artists, repertoire, and audiences around the world.
