Universal Music Group is investing $80 million to buy a stake in one of India's largest Bollywood production companies, Excel Entertainment Pvt.
Universal Music India, a division of Universal Music Group, will acquire a 30% stake in the Mumbai-based film studio. As part of the deal announced Monday, the companies will work together on upcoming films, TV series, music and new formats.
Taking on India's local film industry, Universal Music will now also have global distribution rights to all future original soundtracks attached to projects created or owned by Excel. In the future, the companies are also planning to launch an Excel-linked music label that will allow UMG and Universal Music India artists to appear in various Excel games.
The investment highlights the rapid growth of the Indian entertainment industry.
India is the 15th largest recorded music market in the world.
Founded by producers Ritesh Sidhwani and Farhan Akhtar in 1999, Excel is responsible for producing over 40 different scripted films and shows. Its most popular titles include Dil Chahta Hai, Don and Talaash. The company is currently valued at approximately $290 million.
“India's entertainment landscape continues to grow and this is the perfect time to forge meaningful global collaborations,” Sidhwani and Akhtar said in a joint statement. “Together we strive to bring stories with cultural roots to the world.”
Universal Music Group, headquartered in the Netherlands with another office in Santa Monica, was founded in 1996. The music giant behind artists such as Taylor Swift and Billie Eilish is valued on the US stock market at around $48 billion, with shares trading at around $25.80.
