(Image Source: UMG/Excel)
Universal Music India has agreed to buy a 30 percent stake in Excel Entertainment, the film and series studio co-founded by Farhan Akhtar and Ritesh Sidhwani. The deal values Excel at about Rs 2,400 crore, putting it among the highest-valued independent content producers in the Hindi film and OTT space.
Deal size, structure and control
Universal is taking a significant minority stake, while Akhtar and Sidhwani remain majority owners and continue to run the company and its creative slate. As part of the agreement, Universal’s India head, Devraj Sanyal, will join the Excel Entertainment board, giving the music group a direct say in strategy without day‑to‑day operational control.
The stake gives Universal a financial claim on Excel’s future profits and an equity position in its library of films and shows. At a Rs 2,400 crore valuation for roughly 30 percent, the implied deal size is in the Rs 700–750 crore band, although neither side has publicly disclosed the exact cash consideration.
What Universal gets: music, rights and a label
The core of the partnership sits around music and rights rather than pure film production.
Rights and commercial levers
- Universal secures worldwide distribution rights for music from Excel’s future film and series projects, effectively locking in a pipeline of Hindi and crossover soundtracks for its global catalog.
- A dedicated “Excel Music” label will be created and distributed by Universal’s network, giving Excel a branded channel for its soundtracks while Universal controls monetisation through streaming, video and licensing.
- Universal Music Publishing becomes Excel’s exclusive music publisher, which means synchronization, international covers, brand tie‑ups and other secondary uses of Excel’s music will also sit within the Universal system.
In practical terms, hit songs from Excel films and shows will now plug straight into Universal’s global platforms, playlists and licensing machine.
Why Excel is attractive to a global music group
Excel has built a 25‑year track record across both films and streaming content, which makes it more than a one‑genre or one‑platform bet.
Its catalog includes titles such as Dil Chahta Hai, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do and Gully Boy, all of which leaned heavily on music and youth‑oriented soundtracks. On the streaming side, Excel has been involved with series like Mirzapur and Inside Edge, the latter earning an International Emmy nomination, which gives it some credibility with overseas viewers as well.
For a music company, this means:
- A partner that understands the commercial role of songs in Hindi storytelling.
- A pipeline of music‑driven projects with proven appeal among younger urban audiences.
- Content that can be repackaged, subtitled and pushed outside India, with the music often acting as the first hook for new viewers.
Why Universal is doing this now
India’s recorded music market remains relatively small in absolute revenue terms but is one of the fastest‑growing globally, driven by streaming and short‑video platforms. Film music still dominates listening patterns, and soundtracks are often the most valuable part of a film’s IP from a music label’s perspective.
Universal has already been edging back into Hindi film music over the last couple of years. The Excel transaction moves it a step further up the chain, from simply licensing soundtracks title by title to owning part of the studio that commissions them. That changes the economics:
- It shares in content profits, not just music royalties.
- It can influence projects early so that music is designed with global distribution and playlisting in mind.
- It gets a hedge against pure licensing deals, where competition from other labels can push up prices.
What changes for Excel
For Excel, the deal brings in a large institutional partner with deep experience in monetising music and artist IP.
The obvious benefits are capital and distribution: a stronger balance sheet to back big‑ticket film and series budgets, and direct access to Universal’s international network when it wants to travel shows and films beyond India.
Less visible but equally important is the integration of music thinking into Excel’s projects from development stage. With Universal at the table:
- Songs can be written and produced with an eye on international collaborations and remixes.
- Global artists from Universal’s roster can be attached to selected tracks or campaigns.
- Excel can lean on Universal’s data around listening trends to decide what kind of sound might work in which markets.
At the same time, the company’s founders keep creative authority. Both Farhan Akhtar and Ritesh Sidhwani have publicly emphasised that story and casting decisions remain with the existing team, with Universal’s role focused on music, monetisation and strategic scale‑up rather than scripting or casting.
Wider signal for India’s content business
This transaction fits into a broader pattern of cross‑holdings between music labels, studios and individual producers. Saregama’s investment in Bhansali Productions and financial backing for Dharma Productions from external investors were earlier examples of content houses partnering with capital and distribution heavyweights.
The Universal–Excel tie‑up pushes that one notch further by giving a global music major a meaningful seat inside a Hindi film and OTT studio. If the partnership results in stronger soundtracks and better global reach for Excel’s shows and films, it is likely to encourage similar equity‑plus‑music structures with other production houses over the next few years.
