Promoters of Tips Music plan to sell a minority stake in the Mumbai-based entertainment company to raise capital to scale investments in film content and deepen control over music rights, people familiar with the matter said.

The Taurani family, which holds 64.15% in Tips Music, had earlier held discussions with Universal Music Group for a potential stake sale, but the talks are stalled and a deal is unlikely to materialize due to the latter’s demand for a significant stake, sources said.

“The Taurani family wants to sell a minority stake to raise financial investment, whereas Universal was seeking a strategic investment of about 23-24% with additional voting rights at par with the promoters,” one of them said.

Tips Music’s market capitalization stood at Rs 8,248.97 crore at Monday’s closing price of Rs 645.30 on the BSE.

The Tauranis may now engage with financial investors, the person said. “They want to raise cash to invest in their film business.”

Kumar Taurani, chairman and managing director of Tips Music, and Devraj Sanyal, chairman and CEO for India and South Asia at Universal Music Group, declined to comment.

While valuation was not a sticking point in their discussions, Universal’s demand for enhanced governance rights proved a hurdle, a second person said.

Global music labels typically invest as strategic partners, seeking operational influence rather than acting as passive financial backers.

The development comes amid a broader shift in the music industry, with labels increasingly investing in film production to secure music-linked intellectual property and diversify beyond streaming-led revenues.

Recent deals underscore this trend. Universal Music Group acquired a 30% stake in Excel Entertainment, founded by Farhan Akhtar and Ritesh Sidhwani, at an enterprise value of Rs 2,400 crore. Meanwhile, Saregama invested Rs 325 crore in Bhansali Productions for an initial minority stake of about 28%, with the option to raise it to 51% by 2030.

According to a Ficci-EY report, India’s music industry is projected to grow at a 9% compound annual growth rate (CAGR) to Rs 7,500 crore by 2028. The sector grew 10% in 2025, with digital licensing rising just 2% due to weaker YouTube yields, while OTT platforms, social media and live events drove growth. Labels’ other income rose 26% on expansion into events, talent management and branded content.

At the same time, the sector is seeing consolidation, with large labels acquiring stakes in independent and regional players as streaming consumption rises and the business shifts from an ad-led to a subscription-driven model.

Times Music has acquired Punjabi music label Catrack Entertainment, marking its third strategic deal after earlier buys of ARC Musicq and Symphony Recording Co, while also expanding its partnership with Primary Wave Music.

Tips Industries was demerged into Tips Music and Tips Films in 2021. In the January-March quarter, Tips Music reported revenue of Rs 104 crore, up 33% year-on-year, while net profit nearly doubled to Rs 59 crore.

In its earnings presentation, the company highlighted four growth drivers: rising subscription revenues, increased monetization of short-form content, stronger enforcement of public performance rights, and emerging royalties from artificial intelligence companies.

It also noted that Warner Music Group and Universal Music Group have been actively signing deals in the artificial intelligence space. Universal recently partnered with Nvidia to develop tools for music creation and discovery using its Music Flamingo model.

Separately, a Reuters report in April said billionaire investor Bill Ackman’s Pershing Square Capital Management has proposed a $64-billion takeover of Universal Music Group.

Mumbai: The India unit of Universal Music Group (UMG), world's largest music company, has acquired a 30% stake in Farhan Akhtar and Ritesh Sidhwani’s Bollywood production house Excel Entertainment at an enterprise valuation of Rs 2,400 crore, in one of the largest deals in the film entertainment business.

Under the agreement, Akhtar and Sidhwani will retain creative control, while UMG gains a foothold in the video business and strengthens its Bollywood music catalogue. Devraj Sanyal, Chairman and CEO of Universal Music India & South Asia and SVP of Strategy for Africa, Middle East and Asia, will join Excel Entertainment’s board.

The deal marks the third major M&A transaction in the Hindi film industry in recent times, following Adar Poonawalla’s Rs 1,000 crore investment for a 50% stake in Dharma Productions and Saregama’s Rs 325 crore investment in Sanjay Leela Bhansali’s Bhansali Productions.

The transaction highlights a renewed consolidation wave in the media and entertainment sector, as companies chase scale, capital and stronger IP portfolios amid shifting consumer behaviour. UMG becomes the second music label after Saregama to invest in a film production company, expanding its presence beyond music into filmed entertainment.

Ritesh Sidhwani and Farhan Akhtar, Founders of Excel Entertainment said, “India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations. 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.”

Vishal Ramchandani, CEO, Excel Entertainment said: “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.”

Adam Granite, UMG’s CEO of Africa, Middle East and Asia (AMEA), said: “Today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally. 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 endeavours and throughout the creative process, providing huge benefits to both parties.”

Devraj Sanyal said: “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. 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”.

The investment and strategic partnership, he added, would help UMG deepen its presence in a high-potential recorded music market.

India is the world’s 15th-largest recorded music market by revenues, according to the latest IFPI data, with strong linkages between the country’s audio-visual and music sectors. The opportunity is further underpinned by more than 375 million OTT viewers and an estimated 650 million smartphone users.

Founded in 1999, Excel Entertainment has released more than 40 films and scripted series. Its breakout film Dil Chahta Hai set the tone for a slate that includes Lakshya, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do and Gully Boy.

The company was also among the earliest studios to embrace streaming, producing Amazon Prime Video’s first Indian original series Inside Edge, followed by titles such as Mirzapur, Made In Heaven, Dahaad and Netflix’s Dabba Cartel.

AZB & Partners acted as legal counsel to Universal Music Group. Ernst & Young and KPMG served as transaction advisors to Excel Entertainment and Universal Music Group, respectively. Morgan Stanley advised Excel Entertainment, while Khaitan & Co acted as its legal counsel.

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Mumbai: The Universal Music Group-Excel Entertainment deal could catalyse fresh foreign merger and acquisition interest in India's media and entertainment industry, with the Maharashtra government promoting Mumbai as a global hub to produce creative content, people familiar with the development said.

At least three similar transactions are currently under discussion, though details remain under wraps due to commercial sensitivities, said a top-ranked Maharashtra government official closely tracking the discussions, requesting anonymity.

Universal Music Group's India unit has agreed to acquire a 30% stake in Farhan Akhtar and Ritesh Sidhwani-promoted Excel Entertainment at an enterprise valuation of Rs. 2,400 crore, marking one of the largest deals in India's film and entertainment space.

The Maharashtra government was involved in facilitating the transaction.

The deal follows a series of consolidation moves in the sector, including Adar Poonawalla's acquisition of a 50% stake in Karan Johar's Dharma Productions for Rs. 1,000 crore in 2024, and Saregama's Rs. 325 crore investment in Sanjay Leela Bhansali's Bhansali Productions.

"The film industry is ripe for consolidation, and companies with strong IPs are likely to attract foreign investors," the official said. In the past, several Hollywood studios like Disney and Paramount either scaled back or exited the Indian market due to challenges around scale.

"Global companies today look for five things when choosing where to invest: talent, policy stability, respect for IP, speed of execution and a complete ecosystem. Mumbai and Maharashtra offer all five. That is why we are seeing sustained global interest across music, films, OTT, gaming, AVGC and the creators economy," Maharashtra CM Devendra Fadnavis said announcing the Excel-Universal deal.

UMG CEO for Africa, Middle East and Asia Adam Granite said the company will remain a minority investor in Excel Entertainment, while retaining a say in creative decisions, even as Sidhwani and Akhtar continue to exercise creative freedom.

Filmmaker Mohit Suri, who gave us amazing tracks in his Aashiqui 2 and Ek Villain, launched EMI Records India earlier this year to fuel his passion for music. He is now back in the news because he has signed singer Anmol Malik, daughter of veteran composer Anu Malik for a non-film music album. At a glittering ceremony attended by Universal Music South Asia's MD and CEO, Devraj Sanyal, Anu, Mohit Marwah (Fugly) and lyricist Manoj Muntashir (Galliyan of Ek Villain), Mohit launched the new singer's debut single Lamhein.

An official adaptation of Paradise, much-loved British rock band Coldplay's super hit number, Lamhein is a tribute to them. An avid Coldplay fan, Anmol has created her version of the core melody with romantic lyrics. The video tells a tale about a simple girl who has music in her soul and is consumed by a dream. It turns into reality when Mohit Marwah blazes into her life and puts her in the spotlight.

Pleased that Anmol is the face and voice for his first non-film project, Mohit, who has also directed the video, says, “She has an honest voice and her dedication will ensure an incredible career ahead. While directing Lamhein, I felt the same spontaneity and energy Mohit Marwah I felt while filming Aashiqui 2. I hope everyone relates to the story and emotions in the video.“

Anmol adds, “This song is about all the precious moments that we need to cherish before they turn into distant memories.“

Devraj Sanyal sums up, “This is an amazing beginning for the label. Mohit and I expect it to be a one-of-its kind bridge between the non-film music world and mainstream Bollywood music. We are very excited to launch a roster of super talented artists who will emerge from the label in future.“