Saregama India, part of the RPSG Group, expects nearly 30% of its new Hindi film music content to be sourced from Bhansali Productions Pvt Ltd (BPPL) following its recent strategic investment in filmmaker Sanjay Leela Bhansali’s production house.
Earlier this month, Saregama announced the acquisition of an initial 28% stake in Bhansali Productions for Rs 325 crore, a move aimed at securing a steady pipeline of premium music content at predictable costs and improving long-term visibility on acquisitions.
In an interview with CNBC-TV18, Avarna Jain, vice-chairperson of Saregama India, said the deal is driven by “content security rather than an expansion into film production.” She added that the partnership is expected to account for about 30% of Saregama’s incremental Hindi film music output going forward.
The investment is also set to reshape Saregama’s video strategy. Jain said that, after the completion of existing commitments, all future film-related video production will be routed through Bhansali Productions.
The transaction has been structured through compulsorily convertible preference shares (CCPS), which will convert into equity in October 2028. Based on a pre-agreed performance-linked formula, Saregama’s eventual stake in Bhansali Productions could range from 28% to nearly 50%, depending on the production house’s financial performance over the period.
Under the partnership framework, Bhansali Productions will retain full creative control and ownership of intellectual property, while Saregama will provide governance oversight and financial discipline, leveraging its strengths across music, content monetisation and live events.
For FY25, Bhansali Productions reported revenue of Rs 304 crore, EBITDA of Rs 60 crore, and profit after tax of Rs 45 crore.
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