Excel Entertainment deal to boost pan-diaspora storytelling: Universal

Universal Music India has acquired a 30% stake in Excel Entertainment, betting on film music and pan-diaspora storytelling to drive its next phase of growth

Universal Music India, a division of the €11.8 billion Netherlands-based Universal Music Group (UMG), announced earlier this week that it has entered into an agreement to pick up a significant minority stake in Ritesh Sidhwani and Farhan Akhtar’s Excel Entertainment. The production house is behind films like Gully Boy, Dil Chahta Hai and Zindagi Na Milegi Dobara, as well as shows such as Mirzapur and Made in Heaven, among others. 

Devraj Sanyal, chairman and CEO, India; senior vice-president, strategy, Africa, Middle East and Asia, Universal Music Group, in an email interview with Vanita Kohli-Khandekar, talks about the rationale behind the deal. Edited excerpts: 

What is the nature of the deal and its specifics? 

The total valuation of Excel Entertainment in this deal is around ~2,400 crore (€257 million). Universal Music India will own 30 per cent of the company across all its businesses. Together, we hope to create a future sound for film music that will appeal to listeners in the home market, within the diaspora one and beyond that in the mainstream Anglo market. 

What does the deal do for Universal? Why now? 

This deal allows us to further deliver on pan-Indian and pan-diaspora storytelling. The worlds of music and film have long been closely intertwined and we see this deal as the next step for us in this space.  

In three years time, what will this tie-up do for Universal and Excel? 

We hope that we will have created a world where music for films appeals to fans across the country, across languages and genres. And, have a fresh way of connecting the artistes, their work, their artistry and the film industry meaningfully. The idea is to work in a way that’s global in its thinking and local in execution.  

For a company that positioned itself as the champion of non-film music, why Excel and why film music? 

We were really impressed by the founders of Excel. Over the past two decades, they’ve built up an impressive catalogue of IP (intellectual property). The cultures of UMG and Excel really aligned — particularly around the values of entrepreneurship, creativity and belief in the potential of the Indian market.  

What is India’s role in the global scheme of things for UMG and where in that does Excel sit? 

India is a vibrant and exciting high-potential market with a significant global diaspora. We are seeing more and more of the domestic repertoire travel globally. Excel Entertainment sits right in the middle of it all. Our abilities in long-form storytelling are now greatly enhanced by having them in the family. 

What are the biggest challenges to growth in the music business in India? 

It is to ensure that consumers understand the value of music is a journey. We are moving in the right direction bolstered by an increasing number of breakout stars in India.