Saregama invests in Bhansali Productions for strategic content partnership
What's the story
Saregama India Ltd has announced a strategic partnership with filmmaker Sanjay Leela Bhansali's Bhansali Productions Pvt Ltd. The deal is anchored by an equity investment from the music and entertainment company, combining Bhansali Productions' film and OTT strengths with Saregama's music and live events expertise. This move marks Saregama's shift toward partnerships over in-house film production, reported CNBC TV 18.
Deal details
Exclusive music rights to be sold to Saregama
As part of the deal, Bhansali Productions will exclusively sell the music rights of all its future projects to Saregama under a pre-agreed pricing formula. This arrangement will ensure a steady stream of high-quality film music while avoiding competitive bidding and controlling acquisition costs, according to Saregama. The production house will retain intellectual property rights and creative control over its films. Saregama plans to gradually reduce its in-house film production activities over the next one to two years.
Production house
Bhansali Productions's upcoming projects and financials
Founded in 1996, Bhansali Productions is known for films like Bajirao Mastani, Hum Dil De Chuke Sanam, Devdas, Padmaavat, Gangubai Kathiawadi, and the Netflix series Heeramandi. The studio plans to produce over 10 feature movies in the next three years. The company's upcoming projects include Love and War and Do Deewane Shehar Mein. For FY25, the company has projected revenue of ₹304 crore, with an EBITDA of ₹60 crore and a profit after tax of ₹45 crore.
Statements
Bhansali and Saregama's vice chairperson commented on the partnership
Avarna Jain, vice chairperson of Saregama India, said the partnership is in line with the company's strategy of collaborating with established creative studios to create long-term shareholder value. Meanwhile, Bhansali said the collaboration was based on shared values of artistic, music, integrity, and storytelling. Kotak Investment Banking was the exclusive financial advisor to Bhansali Productions for this transaction.