Excel Entertainment deal to boost pan-diaspora storytelling: Universal

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:

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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?