Sanjay Leela Bhansali, Saregama And Rs 325-Crore Deal: Why This Is A Music Play?
Under the deal structure, all music from films produced by Bhansali Productions will belong to Saregama under a pre-agreed commercial formula.
Calling it a 'natural progression' for the company, Vice Chairperson of Saregama India Ltd., Avarna Jain said Saregama’s Rs 325 crore investment in Bhansali Productions was driven by a clear strategic intent — securing a long-term pipeline of culturally resonant music by partnering with one of the industry’s most consistent creative forces.
The deal, announced last week, will see Saregama acquire between 28% and 49.9% stake in Bhansali Productions by October 2028. The investment is being funded through internal accruals and is expected to be earnings-per-share accretive from FY27, though the company did not disclose internal rate of return projections.
"The idea was to partner with the sharpest and best creative mind in the industry and ensure a steady pipeline of music going forward," Jain said, referring to filmmaker Sanjay Leela Bhansali, whose films have delivered some of Hindi cinema’s most recognisable soundtracks over the past two decades.
Bhansali's filmography includes Hum Dil De Chuke Sanam, Ram-Leela, Bajirao Mastani, Padmaavat and Gangubai Kathiawadi, as well as Netflix series Heeramandi.
Under the deal structure, all music from films produced by Bhansali Productions will belong to Saregama under a pre-agreed commercial formula. Jain said this ensures long-term visibility on premium music IP, eliminates competitive bidding for music rights, and helps control acquisition costs in an increasingly expensive content market.
Bhansali Productions will retain ownership of film IP, allowing it to negotiate independently with theatrical distributors and digital platforms. Jain noted that this reduces dependence on advances and could lead to better margins and returns over time.
The partnership also coincides with Saregama’s decision to gradually wind down its in-house film production business, Yoodlee Films. According to Jain, the move reflects a sharper focus on core strengths. “We want the best people doing what they do best,” she said, adding that film production is better anchored with a specialist creator like Bhansali.
The exit from in-house film production is expected to free up Rs 150–175 crore by FY27, releasing working capital and management bandwidth. The company said this capital will be redeployed into higher-return music investments.
On the broader industry outlook, Jain said Saregama remains optimistic about India’s subscription-driven music economy. While paid subscriptions remain in single digits as a percentage of users, she pointed to the country’s scale and the significantly higher revenue per paid stream compared with ad-supported consumption as key growth drivers.
