Universal Music India picks 30% stake in Excel Entertainment: All you need to know

Universal Music India (UMI), part of Universal Music Group (UMG), has picked a 30% minority stake in Excel Entertainment, valuing the film and digital content studio at ₹2,400 crore. The transaction marks Excel’s first overseas strategic partnership and a rare cross-border bet on an Indian production house. 

Under the agreement, Universal gains global distribution rights for all future original soundtracks created for projects owned or controlled by Excel, founded by actor Farhan Akhtar and film producer Ritesh Sidhwani. A dedicated Excel music label will also be launched and distributed worldwide by Universal, while Universal Music Publishing Group becomes Excel’s exclusive publishing partner. Notably, the founders will retain majority ownership and creative authority. “Strategic decisions will be made collaboratively, with Universal acting as a strategic partner that brings global scale, distribution capabilities, and commercial insight,” said Vishal Ramchandani, CEO, Excel Entertainment. “Excel remains the final authority on creative and content decisions, ensuring our distinctive voice is preserved.”

“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,” said Akhtar and Sidhwani, who founded Excel in 1999. Over the past 26 years, Excel has built a reputation for culturally rooted yet commercially successful IP, beginning with Dil Chahta Hai and extending to franchises like Don and Fukrey, as well as streaming hits such as Inside Edge, Mirzapur, Made in Heaven, and Dahaad. The studio has released more than 40 films and scripted series and has been an early mover in India’s OTT boom.

In FY24, Excel Entertainment reported consolidated operating revenue of ₹147.4 crore, with net profit of ₹8.2 crore, reflecting a sharp rebound from FY23 as film and streaming releases picked up momentum. For the same fiscal, Universal Music India posted ₹638.6 crore in revenue, with net profit of ₹29.5 crore.

Why is the deal significant?

The Hilversum, Netherlands-based UMG’s investment highlights growing global investor interest in Indian content studios even as the Hindi film industry struggles with inconsistent theatrical performance and rising competition from regional cinema and streaming platforms. The deal deepens Universal’s exposure to India’s fast-growing soundtrack-driven music economy, where film music continues to dominate streaming and cultural discovery. For Excel, the deal provides global scale without ceding creative control. 

From a business standpoint, both sides see clear synergies. Beyond global music distribution and monetisation, the partnership opens doors to deeper integration of music and narrative, international co-productions, talent exchange, and even merchandise opportunities leveraging Universal’s global network. “The investment allows us to scale up our films in terms of production value and market reach, while benefiting from Universal’s access to international talent and best practices,” Ramchandani added.

For Universal, the timing is strategic. India ranks as the world’s 15th-largest recorded music market by revenues, according to the most recent data from IFPI, with film soundtracks continuing to drive repeat listening and cultural discovery. With more than 375 million OTT viewers consuming movies, original series, sports and documentaries, alongside an estimated 650 million smartphone users, the intersection between audio-visual content and music consumption is deepening, creating significant headroom for market expansion in the years ahead.

“Today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally,” said Adam Granite, CEO of Africa, Middle East, and Asia at Universal Music Group. “Original soundtracks remain at the heart of India’s fast-growing music market, and by partnering with Excel Entertainment, we will be uniquely positioned to contribute from the earliest stage to its future endeavours and throughout the creative process.”

The Excel transaction is also part of a broader pattern of external capital flowing into Indian studios amid shifting audience preferences and box-office uncertainty. In late 2024, Adar Poonawalla-led Serene Productions acquired a 50% stake in Karan Johar’s banner Dharma Productions and its digital arm Dharmatic Entertainment through Serene Productions. This deal, too, allowed founders to retain creative leadership while bringing in balance-sheet strength.

In that context, Universal’s minority investment stands out for its strategic rather than purely financial intent. By tying capital to music rights, publishing and global distribution, the deal positions Universal not just as an investor but as an embedded partner in India’s content value chain.

For the transaction, AZB & Partners acted as legal counsel to UMG, while EY and KPMG served as transaction advisors to Excel Entertainment and UMG, respectively. Morgan Stanley acted as financial advisor to Excel Entertainment, with Khaitan & Co serving as legal counsel to Excel Entertainment.