The deal is aimed at securing a steady pipeline of music content at a predictable cost and improving visibility on long-term acquisition.
In an exclusive conversation, Avarna Jain, Vice Chairperson of Saregama India, explained that the core objective of the transaction is content security rather than film production expansion. “The main aim was to have a continuous pipeline of music at an acquisition cost that has been controlled,” she said.
The investment has been structured through compulsorily convertible preference shares, which will convert into equity in October 2028. Jain said the final stake will depend on the financial performance of Bhansali Productions over the next three years. Based on a pre-agreed formula, Saregama’s stake could range from 28% to as much as 49.9%, with an option to raise it to a controlling 51% by 2030. The entire investment is being funded through internal accruals.
, all future music from films produced by Bhansali Productions will come to Saregama at a pre-agreed price, removing the need for competitive bidding. Jain said this structure brings clarity on costs and supply. “This structure will guarantee Saregama a steady pipeline of film music and it eliminates competitive bidding,” she noted.
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Saregama expects around 30% of its new Hindi film music content to be sourced through this partnership. The fixed pricing model, linked to production-related parameters, also reduces the risk of overpaying for music rights. “There is no question of acquiring content at a very high price and then it not giving you a good payback,” Jain said.
The partnership will also lead to a shift in Saregama’s video strategy. Jain confirmed that after completing current projects, the company will route all future film production through Bhansali Productions. “It frees up working capital and management bandwidth,” she said, adding that this allows Saregama to focus on its core intellectual property business while Bhansali Productions handles film creation.
Saregama India currently has a market capitalisation of ₹6,720.37 crore. Its shares have declined by more than 26% over the past year.
For the full interview, watch the accompanying video
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‘ Some details of this article were extracted from the following source www.cnbctv18.com ’
