Universal Music buys 30% of Excel Entertainment

MUMBAI: Universal Music Group has stepped deeper into India’s entertainment business, acquiring a 30 per cent stake in Mumbai-based production house Excel Entertainment.

The deal, executed through Universal Music India, values Excel at Rs 2,400 crore, or about $290 million, and establishes a long-term strategic partnership spanning films, series and music. Universal becomes a significant minority shareholder, while Excel’s founders Ritesh Sidhwani and Farhan Akhtar retain creative control of the studio.

Music sits at the centre of the agreement. Universal will receive global distribution rights for all future original soundtracks from projects owned or controlled by Excel. The partnership also includes the launch of a dedicated Excel music label, to be distributed worldwide by Universal Music Group, along with an exclusive publishing tie-up with Universal Music Publishing Group.

In effect, Excel’s upcoming films and shows will now be designed with a global music audience in mind, connecting Indian screen storytelling to international streaming platforms and playlists.

Devraj Sanyal, chairman and CEO of Universal Music India and South Asia, will join Excel’s board as part of the transaction.

For Universal, the investment reflects confidence in India’s screen-led music economy. India is currently the world’s 15th-largest recorded music market, with growth driven by the close relationship between films, series and soundtracks. The country has more than 375 million OTT viewers and around 650 million smartphone users, making audio-visual content a powerful driver of music discovery.

Film music in India often enjoys a long afterlife, replayed well beyond theatrical or streaming runs. By partnering directly with a content studio, Universal gains early access to soundtracks with cultural staying power.

Morgan Stanley advised Excel on the transaction. Legal counsel was provided by AZB and Partners for Universal Music Group and Khaitan and Co for Excel, with Ernst and Young and KPMG acting as transaction advisers.

Founded in 1999, Excel Entertainment has shaped modern Hindi cinema with iconic films like Dil Chahta Hai, Zindagi Na Milegi Dobara and Gully Boy, which brought India’s hip-hop heartbeat to the big screen. On the digital front, the studio has redefined storytelling with series such as Inside Edge, Mirzapur, Made in Heaven, Dahaad and Netflix’s Dabba Cartel.

The two companies said that further details about the new music label and the first wave of soundtracks will be revealed in the months ahead, promising a blend of cinematic storytelling and chart-worthy melodies. With this partnership, Indian stories are set to travel far beyond their origins, finding their way into hearts, headphones, and screens across the globe, carrying with them the rhythm, energy, and soul of a vibrant entertainment landscape.