Universal Music Takes 30% Stake in India’s Excel Entertainment With $267 Million Deal

Universal Music India, the local division of the global music giant, has taken a strategic 30% stake in the prominent Bollywood studio Excel Entertainment, the companies announced Monday. The investment values the Mumbai-based production house at INR 2,400 crores (approximately $267 million) and includes a key provision: Universal Music Group (UMG) secures worldwide distribution rights for all future original soundtracks from Excel's projects. This move underscores the increasing convergence of film and music as global entertainment properties.

Founded in 1999 by actor-director Farhan Akhtar and producer Ritesh Sidhwani, Excel Entertainment has been a defining force in modern Indian cinema for over two decades. The studio is renowned for crafting culturally resonant stories, from early classics like "Dil Chahta Hai" to the critically acclaimed "Gully Boy," which was India's official submission for the 2019 International Feature Film Oscar. Its expansion into streaming has been equally successful, with Prime Video's Emmy-nominated series "Inside Edge" and popular hits "Mirzapur" and "Made in Heaven." As media analyst Priya Mehta notes, "Excel has consistently identified zeitgeist-shifting narratives. This partnership formalizes the studio's intent to amplify those stories through a world-class music strategy, which is often the primary global export of Indian cinema."

The partnership will see the launch of a dedicated Excel music label with global distribution through UMG's network, while Universal Music Publishing Group becomes Excel's exclusive publishing partner. A significant creative cross-pollination is also planned, with opportunities for UMG's international artist roster to feature in Excel's future film and series productions. To oversee this collaboration, Devraj Sanyal, Chairman and CEO of Universal Music India and South Asia, will join Excel's board of directors, though Sidhwani and Akhtar will retain full creative control.

In a joint statement, Sidhwani and Akhtar emphasized the timing of the alliance, stating, "India's entertainment landscape is experiencing unprecedented global interest. Partnering with UMG creates a transformative alliance that unlocks fresh opportunities for artists across music and film, allowing us to take culturally rooted stories to a worldwide audience." Excel CEO Vishal Ramchandani echoed this vision, calling the deal a "pivotal step" in transforming Excel into a "creative global studio" focused on "clutter-breaking, original content."

For UMG, this deal is a calculated expansion in a vital growth market. According to the IFPI, India is the world's 15th-largest recorded music market by revenue, with original soundtracks remaining a dominant and growing genre. Adam Granite, UMG's CEO for Africa, Middle East, and Asia, stated the investment uniquely positions the label to contribute "from the earliest stage" of Excel's creative process. The potential audience is vast, with India boasting over 375 million OTT platform viewers and 650 million smartphone users. This infrastructure supports what Devraj Sanyal termed a "hugely exciting opportunity for music-led entertainment," with Excel serving as the ideal local anchor.

The transaction involved several major financial and legal firms. AZB & Partners and KPMG acted as legal counsel and transaction advisor, respectively, for UMG. Excel Entertainment was advised by Morgan Stanley as financial advisor, with Khaitan & Co. providing legal counsel and Ernst & Young serving as transaction advisor.