Universal Music Group (UMG), the Dutch -American music corporation with headquarters in the Netherlands and in Santa Monica, CA, has reached a definitive agreement to acquire a 30% stake in Excel Entertainment, an Indian film and digital content studio. UMG will pay $90 million for the stake, a deal that values the Mumbai-based studio at approximately $280 million.
Founded in 1999, by Ritesh Sidhwani and Farhan Akhtar. Excel Entertainment is responsible for hits such as Gully Boy and Dil Chahta Hai.
Excel Entertainment CEO Vishal Ramchandani said, “This partnership with UMG marks a pivotal step in our journey to broaden creative opportunities and tell Indian stories with a global lens.“
Under this new partnership:
Global Distribution: UMG gains global distribution rights for all future original soundtracks from Excel Entertainment’s projects.
New Music Label: The two entities will launch a dedicated Excel Entertainment music label, with UMG serving as the exclusive music publishing partner.
Leadership: Sidhwani and Akhtar will maintain creative control of the studio, while UMG’s Devraj Sanyal will join Excel Entertainment’s board of directors.
Market Context and Growth
Universal is making a calculated move into India, which currently ranks as the 15th largest recorded music market globally by revenue. The company identified two primary drivers for this investment:
Mobile Connectivity: India currently has approximately 650 million smartphone users, providing an extensive platform for digital streaming growth.
Soundtrack Dominance: In the Indian market, film soundtracks are a primary driver of music consumption and enjoy high replay value compared to other genres.
Adam Granite, UMG’s CEO for Africa, the Middle East, and Asia, noted that the deal aligns with the “growing desire” of Indian listeners to access high-quality original soundtrack content.
