In one of the largest deals in the Indian film entertainment business, the India unit of Universal Music Group (UMG), world’s largest music label, has acquired a 30% stake in Farhan Akhtar and Ritesh Sidhwani’s unlisted Bollywood production house, Excel Entertainment, at an enterprise valuation of ₹2,400 crore, the two companies said.
As part of the deal, Akhtar and Sidhwani will retain creative control, while UMG gains a strategic foothold in the video business and further strengthens its music catalogue. Ernst & Young and KPMG were transaction advisors to Excel Entertainment and UMG, respectively. Devraj Sanyal, Chairman and CEO of Universal Music India & South Asia and SVP of Strategy for Africa, Middle East and Asia, will join Excel Entertainment’s board. The transaction marks the third major M&A move in the Hindi film industry in recent times, following Adar Poonawalla’s ₹1,000 crore investment for a 50% stake in Karan Johar’s Dharma Productions and Saregama’s ₹325 crore investment in Sanjay Leela Bhansali’s banner.
Founded in 1999, Excel Entertainment has released more than 40 films, including Dil Chahta Hai, Zindagi Na Milegi Dobara, Gully Boy, Inside Edge, Mirzapur and Made in Heaven.
The deal highlights a renewed wave of consolidation as media companies chase scale, capital and strong IP amid shifting consumer behaviour. Universal becomes the second music label after Saregama to invest in a film production company, giving it deeper access to film-led music creation.
“We’re excited to partner with UMG in what we believe will be a truly creative and transformative alliance…Together, we aim to take culturally rooted stories to the world,” Sidhwani and Akhtar said in a statement.
Vishal Ramchandani, CEO of Excel Entertainment, said the partnership would help transform Excel into a global creative studio delivering original, clutter-breaking content across platforms and geographies.
Adam Granite, UMG’s CEO for Africa, Middle East and Asia, said original soundtracks remain central to India’s fast-growing music market. “By investing in and partnering with Excel Entertainment, UMG will be uniquely positioned to contribute from the earliest stage to Excel’s future endeavours and throughout the creative process, providing huge benefits to both parties,” he said.
Sanyal added that the Indian film ecosystem presents a significant opportunity for music-led entertainment.
India currently ranks as the world’s 15th-largest recorded music market by revenues, according to IFPI, supported by strong links between audio-visual content and music consumption. With more than 375 million OTT viewers and around 650 million smartphone users, the market offers substantial long-term growth.
Source: Economic Times