The Universal Music Group has kicked off 2026 with the first big investment of the year: its Universal Music India subsidiary is taking a 30% stake in Indian film and digital content studio Excel Entertainment, a deal that values the latter enterprise at approximately $257 million, the companies announced today (Jan. 5). At that valuation, UMG’s investment works out to just north of $77 million.
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The deal gives Universal global distribution rights for all of Excel’s original soundtracks moving forward, including those created for Excel’s popular musical drama projects, and will include the launch of a new Excel record label. Universal Music Publishing Group will also become Excel’s global exclusive publishing partner, while UMG’s chairman/CEO of Universal Music India & South Asia and senior vp of strategy, Africa, Middle East and Asia Devraj Sanyal will join Excel’s board of directors. A press release says that Excel’s founders Ritesh Sidhwani and Farhan Akhtar will remain in charge of overseeing content and creative direction.
“India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations,” Sidhwani and Akhtar said in a joint statement announcing the deal. “We’re excited to partner with UMG in what we believe will be a truly creative and transformative alliance—one that unlocks fresh opportunities for artists and repertoire across music, film and emerging formats. Together, we aim to take culturally rooted stories to the world.”
Added Vishal Ramchandani, Excel’s CEO, “This partnership with UMG marks a pivotal step in our journey to broaden creative opportunities and tell Indian stories with a global lens. With a shared vision for innovation and excellence, we aim to transform Excel into a creative global studio — one that brings clutter-breaking, original content to audiences across platforms and geographies.”
The deal marks another foray into the Indian market for the U.S.-based music business, which has increasingly turned its attentions to the fast-rising subcontinent in recent years. Last February, Republic Records launched a joint venture with Savan Kotecha to find the next Indian pop boy band, while Warner Music’s Canadian and Indian operations (the latter of which was launched in 2022) founded a joint-venture label called 91 North Records in 2022, and in July HYBE announced it was exporting its K-pop model to India. Recently, several other labels, publishers and DSPs have broadened their reach in the region. India boasts the world’s largest population, but is the 15th-biggest recorded music market in the world, according to IFPI’s latest figures, suggesting plenty of room for growth in the industry. India is also a fast-growing concert hub, with the likes of Ed Sheeran, John Mayer and Coldplay making waves with shows in the country.
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“Today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally,” said UMG’s CEO of Africa, Middle East and Asia Adam Granite in a statement. “Original soundtracks remain at the heart of India’s fast-growing music market, with Indian listeners showing a growing desire to access more music in that genre. By investing in and partnering with Excel Entertainment, UMG will be uniquely positioned to contribute from the earliest stage to Excel’s future endeavors and throughout the creative process, providing huge benefits to both parties.”
“Farhan and Ritesh have built an exceptionally impressive business, and we’re thrilled to be working with them on the next phase of their journey,” Sanyal commented. “The Indian film scene presents a hugely exciting opportunity for music and the music-led entertainment business, and Excel is the perfect partner for us to work with going forward.”
Excel, founded in 1999, has released over 40 film and original shows over the past quarter century, according to a press release, which also notes that Indian film and TV soundtracks are often re-listened to compared to other genres and formats in the country, which UMG hopes to tap into. AZB & Partners served as legal counsel and KPMG served as transaction advisor to UMG for the deal; for Excel, Khaitan & Co. acted as legal counsel, Ernst & Young as transaction advisor, and Morgan Stanley as financial advisors.
