Universal Music Takes 30% Stake in India’s Excel Entertainment

Universal Music Group’s Indian division has secured a significant minority stake in one of Bollywood’s leading production houses, gaining global soundtrack rights in the process, it was confirmed on Monday.

Universal Music India has entered 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 strategic partnership grants UMG global distribution rights for all future original soundtracks from Excel’s projects.

Founded in 1999 by producers Ritesh Sidhwani and Farhan Akhtar, Excel Entertainment has established itself as a major force in Indian cinema and streaming content. 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.”

Under the agreement, UMG will launch a dedicated Excel music label with global distribution, while Universal Music Publishing Group becomes Excel’s exclusive music publishing partner. The arrangement creates opportunities for UMG’s existing artist roster to be featured in Excel’s future productions.

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. Sidhwani and Akhtar will continue overseeing creative direction and content decisions.

“India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations,” Sidhwani and Akhtar said in a joint statement. “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, Excel Entertainment’s CEO, 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.”

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.

Adam Granite, UMG’s CEO of Africa, Middle East and Asia, 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.”

Sanyal added: “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.”

India’s digital entertainment sector presents significant growth opportunities, with more than 375 million over-the-top viewers and 650 million smartphone users consuming content across multiple platforms.

AZB & Partners served as legal counsel to UMG, with KPMG acting as transaction advisor. Morgan Stanley advised Excel Entertainment as financial advisor, with Khaitan & Co. providing legal counsel. Ernst & Young served as transaction advisor to Excel Entertainment.