Key Takeaways
- Universal Music India has taken a 30% minority stake in Excel Entertainment, valuing the company at ₹2,400 crore (approximately $290 million)
- The partnership aims to accelerate Excel’s growth and strengthen Universal Music Group’s position in India’s music-driven screen economy
- Universal Music Group will receive global distribution rights for all future original soundtracks attached to projects produced or controlled by Excel
- The companies will launch a dedicated Excel music label, distributed worldwide by Universal Music Group, and Universal Music Publishing Group will become Excel’s exclusive publishing partner
- The partnership is expected to create new revenue streams and cross-platform opportunities while expanding the global reach of Indian stories and artists
Introduction to the Partnership
The recent announcement of Universal Music India’s significant minority stake in Excel Entertainment marks a pivotal moment in the Indian entertainment industry. The deal, which values Excel at ₹2,400 crore (approximately $290 million), aims to deepen Universal Music Group’s push into India’s fastest-growing entertainment market. By partnering with the Mumbai-based studio, Universal Music India will acquire a 30% equity interest and collaborate with Excel across film, series, music, and emerging formats. This strategic alliance is designed to accelerate Excel’s growth while strengthening Universal Music Group’s position in India’s music-driven screen economy.
Benefits of the Partnership
The partnership between Universal Music India and Excel Entertainment is expected to bring numerous benefits to both parties. Universal Music Group will gain a seat on Excel’s board through Devraj Sanyal, chairman and CEO of Universal Music India & South Asia and senior vice president of strategy for Africa, the Middle East, and Asia. This will enable Universal Music Group to contribute to Excel’s development pipeline, especially around music-led projects, and provide huge benefits to both parties. The companies will also launch a dedicated Excel music label, distributed worldwide by Universal Music Group, which will further expand the global reach of Indian stories and artists.
Excel Entertainment’s History and Success
Excel Entertainment has built one of India’s most recognizable production brands, spanning theatrical films and streaming series. Founded with the breakout success of Dil Chahta Hai in 2001, the company has produced titles such as Lakshya, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do, and Gully Boy, alongside streaming successes including Inside Edge, Mirzapur, Made in Heaven, Dahaad, and the recent Netflix project Dabba Cartel. Excel’s projects have earned both commercial traction and festival recognition, with appearances at Cannes, Berlin, and Toronto. The company’s success is a testament to the growing demand for Indian content, both locally and globally.
Universal Music Group’s Investment in India
Universal Music Group’s investment in Excel Entertainment comes amid strong structural growth in India, ranked the world’s 15th-largest recorded-music market. The country’s uncommonly tight link between screen content and soundtrack performance makes it an attractive market for Universal Music Group. With more than 375 million OTT viewers and roughly 650 million smartphone users, India offers a huge potential for growth and expansion. The companies cited the cultural staying power of widely replayed film music as an indicator of future upside, and the partnership is expected to create new revenue streams and cross-platform opportunities.
Future Plans and Expectations
The partnership between Universal Music India and Excel Entertainment is expected to create new opportunities for Indian artists and storytellers. The companies will work together to develop new content, including original soundtracks, and expand the global reach of Indian stories and artists. Details on the new Excel music label and forthcoming soundtracks will be announced in the months ahead. With this partnership, Universal Music Group and Excel Entertainment aim to transform the Indian entertainment industry and bring clutter-breaking, original content to audiences across platforms and geographies. As the Indian entertainment market continues to grow, this partnership is poised to play a significant role in shaping the industry’s future.