Saregama Teams Up with Bhansali Productions in Major Deal
In a significant development that could change the dynamics of Bollywood’s music and film industry, Saregama India Ltd has formed a strategic partnership with Bhansali Productions, under the direction of renowned filmmaker Sanjay Leela Bhansali. This collaboration includes an equity investment from Saregama, marking the beginning of a fruitful long-term relationship between both companies.
As part of the agreement, Bhansali Productions will sell the music rights of all its upcoming films solely to Saregama. This setup will provide Saregama with a steady supply of high-quality film music while streamlining the acquisition process.
Despite this partnership, Bhansali Productions will maintain full ownership and creative control over its films. Saregama will play a role in providing financial oversight as they work together. The deal is in line with Saregama’s plan to refocus its resources on forming partnerships rather than producing films in-house over the next couple of years.
The impact of this investment is anticipated to positively affect Saregama’s earnings by FY27, enhancing profit margins in both music and video segments.
Bhansali Productions, established in 1996, has produced iconic films like Hum Dil De Chuke Sanam, Devdas, Bajirao Mastani, Padmaavat, and the Netflix series Heeramandi. The studio aims to release over ten feature films in the coming three years, including the eagerly awaited Love and War, featuring stars like Ranbir Kapoor and Alia Bhatt, and Do Deewane Seher Mein, with Siddhant Chaturvedi and Mrunal Thakur.
For FY25, Bhansali Productions recorded revenues of ₹304 crores, ₹60 crores in EBITDA, and a profit after tax of ₹45 crores. Avarna Jain, Vice Chairperson at Saregama, stated that this partnership represents the company’s goal of engaging with established creative studios and delivering long-term benefits to shareholders. Bhansali emphasized their mutual commitment to artistic integrity and storytelling.
Kotak Investment Banking served as the exclusive financial advisor for Bhansali Productions during this transaction. Saregama, a part of the RP-Sanjiv Goenka Group, engages in various facets of music, digital content, television, artiste management, and film production.
