Universal Music India Acquires 30% Stake in Excel Entertainment

Universal Music India (UMI), part of Universal Music Group (UMG), has entered into a definitive agreement to acquire a significant minority stake in Indian film and digital content studio Excel Entertainment. The transaction values Excel Entertainment at INR 2,400 crore (around €257 million) with UMI picking up a 30 percent equity stake.

The deal marks the beginning of a strategic partnership between the two companies, aimed at expanding their respective operations in India's fast-growing entertainment market.

As part of the agreement, UMG will secure global distribution rights for all future original soundtracks created for projects owned or controlled by Excel Entertainment. A dedicated Excel music label will also be launched with global distribution handled by UMG. In addition, Universal Music Publishing Group will become Excel's exclusive music publishing partner. This arrangement is expected to open up opportunities for existing UMG and UMI artists and catalogues to be integrated into Excel's future films and digital productions.

Devraj Sanyal, Chairman and CEO of Universal Music India and South Asia, will join Excel Entertainment's board of directors following the transaction. Excel founders Ritesh Sidhwani and Farhan Akhtar will continue to oversee the studio's creative direction and content decisions.

Founded in 1999, Excel Entertainment has built a strong track record in Indian cinema and digital content. The studio has produced over 40 films and scripted series, beginning with Dil Chahta Hai in 2001. Its filmography includes titles such as Lakshya, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do and Gully Boy.

The company has also played a key role in India's digital content space, producing Inside Edge, Amazon Prime Video's first Indian original series, which received an International Emmy nomination, followed by shows such as Mirzapur, Made in Heaven, Dahaad and Dabba Cartel.

For the transaction, 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, while Morgan Stanley acted as financial advisor to Excel Entertainment. Khaitan & Co represented Excel Entertainment as legal counsel.