“We will continue to look for M&A opportunities here in India and across all of our markets where it makes sense,” he said, adding that the company is talking to many companies in multiple markets.
In India, UMG is looking to acquire companies across the music ecosystem, including labels and catalogues. “Music has to be a central piece of the company,” Granite said.
As per the financial data sourced from Tofler, UMG subsidiary Universal Music India’s revenue in FY23 was Rs 555 crore, with a net profit of Rs 72 crore.
Apart from India, the music company sees China as another important market. “There are two markets we talk about most often, and that would be China and India. But India is one of our key markets and one of our key vocal points for growth,” the CEO said.
In 2022, UMG’s India arm acquired a majority stake in TM Ventures, a leading music and entertainment company.Subsequently, the company inked an exclusive partnership with leading talent management company Represent. The company also has an existing global distribution deal with Punjabi record label Desi Melodies.As per the International Federation of the Phonographic Industry, music revenue increased 10.2% year-on-year to $28.6 billion in 2023. India ranked 14th in the global music market.
According to a FICCI-EY report, the Indian music market expanded by 10% to reach Rs 2,400 crore in 2023, slower than previous years as certain music over-the-top platforms shifted to the pay model.
“Over the next five years, we would like to see India move well into the top 10. And over time, it should certainly be in the top five, but that is going to take a lot of market dynamics to also shift,” Granite said.
The UMG CEO said the Indian music market must transition from a free to a paid model to realise its true potential. “For the market to grow into that upper echelon and upper tier of revenue markets, it’s going to have to evolve into more of a paid market,” Granite said.
As part of its next phase of growth, UMG has elevated Sanujeet Bhujabal to managing director and Viral Jani to chief revenue officer of Universal Music India and South Asia. Both Bhujabal and Jani will work closely with UMG India and South Asia chairman Devraj Sanyal.
