Universal Music India (UMI) on Monday announced that it will acquire a 30 per cent equity stake in film and digital content studio Excel Entertainment, valuing the Ritesh Sidhwani and Farhan Akhtar-founded company at Rs 2,400 crore.

UMI, a division of Universal Music Group (UMG), said it has entered into a definitive agreement with Excel Entertainment for the transaction. “Under the agreement, which values Excel at Rs 2,400 crore (euro 257 million), UMI will become a significant minority shareholder in Excel with a 30 per cent equity stake,” the company said in a statement.

The investment is aimed at establishing a long-term strategic partnership between the two companies to accelerate Excel’s growth and further strengthen UMI’s presence in the Indian market. As part of the agreement, Devraj Sanyal, Chairman and CEO of Universal Music India & South Asia and SVP of Strategy, Africa, Middle East and Asia, will join Excel Entertainment’s Board of Directors.

Excel founders Ritesh Sidhwani and Farhan Akhtar will continue to lead the studio’s creative direction and content decisions, the statement said.

The deal also grants UMG global distribution rights for all future original soundtracks created for projects owned or controlled by Excel. In addition, the partnership includes the launch of a dedicated Excel music label that will be globally distributed by UMG.

Universal Music Publishing Group will become Excel’s exclusive music publishing partner, creating opportunities for UMG and UMI artists and repertoire to be featured in Excel’s upcoming productions.

Commenting on the development, UMG CEO of Africa, Middle East and Asia (AMEA), Adam Granite said, “Today's announcement further strengthens UMG's position in India, a dynamic and strategically important music market for the group globally.” He added, “By investing in and partnering with Excel Entertainment, UMG will be uniquely positioned to contribute from the earliest stage to Excel's future endeavours and throughout the creative process, providing huge benefits to both parties.”

Sidhwani and Akhtar said India’s entertainment landscape continues to grow rapidly, making this an opportune moment to forge global partnerships. The collaboration with UMG will be a “truly creative and transformative alliance -- one that unlocks fresh opportunities for artists and repertoire across music, film, and emerging formats,” they added.

Founded in 1999, Excel Entertainment has released more than 40 films and original scripted series, starting with the 2001 blockbuster Dil Chahta Hai. Between them, Sidhwani and Akhtar have received over 60 awards and accolades across the entertainment industry.