Universal Music India invests in Excel Entertainment, taking a minority stake at a ₹2,400 crore valuation

Universal Music Group’s Indian unit has acquired a minority stake in Bollywood production house Excel Entertainment, securing global rights to future original soundtracks, according to Variety.

Universal Music India has signed a definitive agreement to buy a 30% equity stake in Excel Entertainment, valuing the Mumbai-based film and digital studio at about Rs 2,400 crore ($267 million). As part of the deal, the acquiring company will get global distribution rights for all original soundtracks from the acquired company’s upcoming films and series.

Under the agreement, the acquiring company is expected to set up a dedicated music label for Excel’s projects with global distribution. Universal Music Publishing Group will become the acquired company’s exclusive music publishing partner. The arrangement also allows Universal’s artists to collaborate on future Excel productions.

Devraj Sanyal, Chairman and Chief Executive Officer of Universal Music India and South Asia and senior Vice President of Strategy for Africa, the Middle East and Asia, will join Excel Entertainment’s board of directors. Ritesh Sidhwani and Farhan Akhtar will continue overseeing creative direction and content decisions.

Commenting on the development, Ritesh Sidhwani and Farhan Akhtar, Founders of Excel Entertainment, in a joint statement said, “India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations. We’re excited to partner with UMG in what we believe will be a truly creative and transformative alliance, one that unlocks fresh opportunities for artists and repertoire across music, film, and emerging formats. Together, we aim to take culturally rooted stories to the world.”

Vishal Ramchandani, CEO, Excel Entertainment, added, “This partnership with UMG marks a pivotal step in our journey to broaden creative opportunities and tell Indian stories with a global lens. With a shared vision for innovation and excellence, we aim to transform Excel into a creative global studio-one that brings clutter-breaking, original content to audiences across platforms and geographies.” 

Adam Granite, CEO of Africa, Middle East and Asia(AMEA), Universal Music Group, said, “Today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally. 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. By investing in and partnering with Excel Entertainment, UMG will be uniquely positioned to contribute from the earliest stage to Excel’s future endeavours and throughout the creative process, providing huge benefits to both parties.”

Devraj Sanyal said, “Farhan and Ritesh have built an exceptionally impressive business, and we’re thrilled to be working with them on the next phase of their journey. The Indian film scene presents a hugely exciting opportunity for music and the music-led entertainment business, and Excel is the perfect partner for us to work with going forward”.

The transaction involved multiple advisors. AZB & Partners and KPMG advised Universal Music Group, while Morgan Stanley, Khaitan & Co., and Ernst & Young advised Excel Entertainment.