Universal Music India acquires minority stake in Excel Entertainment

Universal Music India (UMI), a division of Universal Music Group (UMG), has entered into a definitive agreement to acquire a 30% equity stake in Indian film and digital content studio Excel Entertainment. The transaction values Excel Entertainment at INR 2,400 crores, approximately €257 million (approximately INR 2,400 crore), and establishes a long-term strategic partnership between the two companies focused on music, film and digital content creation.

The investment is intended to support Excel’s future growth while strengthening UMI’s domestic operations in India, a market considered strategically important for the global music business. As part of the agreement, UMI becomes a significant minority shareholder, while Excel founders Ritesh Sidhwani and Farhan Akhtar retain control over creative direction and content decisions.

Excel Entertainment has built a strong reputation in Indian cinema and original digital programming, alongside a consistent track record in music-driven storytelling. Musical dramas remain a popular genre in India, and the partnership is designed to integrate music at an early stage of audio-visual production.

Under the terms of the agreement, UMG will receive global distribution rights for all future original soundtracks created for projects owned or controlled by Excel. The collaboration also includes the launch of a dedicated Excel music label, which will be globally distributed by UMG. In addition, Universal Music Publishing Group will act as Excel’s exclusive music publishing partner, opening opportunities for UMG and UMI artists and catalogue to be incorporated into future Excel productions.

Devraj Sanyal, chairman and ceo of Universal Music India and South Asia and svp of strategy for Africa, Middle East and Asia, will join Excel Entertainment’s board of directors. Commenting on the partnership, Sidhwani and Akhtar 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.”

Vishal Ramchandani, ceo of Excel Entertainment, described the partnership as an opportunity to broaden creative reach and position Excel as a global studio delivering original content across platforms and markets. Adam Granite, ceo of UMG for Africa, Middle East and Asia, said the investment strengthens UMG’s position in India, noting the continued importance of original soundtracks within the country’s music ecosystem.

India currently ranks as the world’s 15th-largest recorded music market by revenue, according to IFPI data. The market benefits from strong links between the audio-visual and music sectors, alongside growing digital consumption. India has more than 375 million over-the-top viewers and around 650 million smartphone users, providing scale for future growth.

Founded in 1999, Excel Entertainment has released more than 40 films and original scripted series. Its portfolio includes titles such as Dil Chahta Hai, Lakshya, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do and Gully Boy. The company has also adopted a digital-first strategy, producing India’s first original series for Amazon Prime Video, Inside Edge, which received an International Emmy nomination, followed by titles including Mirzapur, Made in Heaven, Dahaad and Netflix series Dabba Cartel.

AZB & Partners acted as legal counsel to Universal Music Group. Ernst & Young and KPMG served as transaction advisors to Excel Entertainment and Universal Music Group, respectively. Morgan Stanley advised Excel Entertainment, with Khaitan & Co acting as its legal counsel.