Excel Entertainment, the production house owned by Farhan Akhtar and Ritesh Sidhwani, achieved a landmark on Monday as the company is set to enter into a partnership with Universal Music Group. The historic minority-stake deal is the biggest for any production house.
Under the deal, Excel Entertainment's value will cross ₹2,400 crore and will accelerate the Farhan Akhtar-owned banner, while also strengthening Universal Music India’s domestic operation in a high- growth and strategically important market.
Both the banners have been in talks for months. This collaboration also allows Universal to strengthen its presence in the Indian film market, according to a press release.
UMI will become a significant minority shareholder in Excel with a 30% equity stake.
“The deal will provide the foundation for a new strategic partnership between UMI and Excel to accelerate Excel’s growth and further enhance UMI’s position in the important Indian market,” as per the press release.
The partnership will be officially announced at a press conference in the presence of the Chief Minister of Maharashtra, Devendra Fadnavis. The collaboration aligns with the vision of Prime Minister Narendra Modi to create Indian content for global audiences.
India ranks as the world’s 15th-largest recorded music market by revenues, according to the most recent data from IFPI and with strong links between the Indian audio-visual and music sectors. Additionally, with a reach of more than 375 million ‘over the-top’ viewers consuming movies, original shows, sports, reality shows and documentaries, and with 650 million smartphone users in India, there is opportunity to continue to grow the market in the coming years, the press release said.
What are the terms of the deal?
Under the terms of the agreement, UMG will gain global distribution rights for all future original soundtracks created for projects owned or controlled by Excel. The alliance also includes the launch of a dedicated Excel music label, to be globally distributed by UMG.
Universal Music Publishing Group will also become Excel’s exclusive music publishing partner, creating opportunities for existing UMG and UMI artists and repertoire to be included in Excel’s future productions.
The announcement comes as Excel Entertainment marks its 25th year, having debuted with "Dil Chahta Hai" in 2001. The banner has backed several noted titles over the years, including the "Don" franchise, "Zindagi Na Milegi Dobara", "Gully Boy", and the "Fukrey" series.
The banner has also been a pioneer in OTT content, with acclaimed shows such as "Mirzapur", "Made in Heaven", and "Dahaad", among others.
Universal Music Group is the world's leading music organisation.
(This is a developing story. Check back for updates)
