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India's music to be 'Universalised'

Suparn Verma in Bombay
Photographs: Jewella C Miranda
Click on the photographs for bigger images

Seagram group's Universal Music, the world's largest music company, has amplified its presence in India, the largest music cassette market in the world.

Early this week, UM formally raised its 51 per cent stake in Polygram India to 100 per cent, shelling out $ 4 million (Rs 174 million) for the 49 per cent equity held by the Patel family. Universal's original 51 per cent stake was held by its Indian arm Polygram.

Polygram India has been renamed Universal Music India. Its launch on November 16 in Bombay was a celebration of sorts: the cinema and music industry's creme de le creme turned up at the party. So did Jorgen Larsen, chairman and CEO, Universal, and Norman Cheng, chairman, Universal (Asia-Pacific), reinforcing the significance of the company's decision.

UMI will invest Rs 4 billion upwards in India, partly on building local content, the rest on making Indian music and artistes globally popular a la Latin American music. In the short term, Universal will organise tours to India of leading international artistes and music groups such as Sting, Bryan Adams and Metallica.

Analysts said Universal's sharpening of its focus on India is in keeping with parent Seagram's strategy to mould the former into the music industry's leader. Under Edgar Brofman Jr, Seagram acquired Universal/MCA from Matsushita in 1995. In 1998, he presided over Universal's acquisition of Polygram. His efforts saw Universal garnering the top position with 27 per cent of the international repertoire. Warner, Sony Music, EMI and BMG complete the list of the top five.

In India, Universal has pitted itself against market-leader HMV and other big players like Tips, Sony and Magnasound. (Click on the underlined word for an interview with Magnasound's chief Shashi Gopal.)

Analysts said Universal has shattered the myth that takeovers by multinational corporations are bad for employees. UMI has retained the Vijay Lazrus-led team that steered Polygram India in the $ 300 million Indian market, the third largest in Asia and the 19th largest in the world.

Analysts project a boom in future for CD players whose current penetration is estimated at 13 per cent of households. In 1998, 250 million units of audio cassettes (18 per cent of world sales) were sold in India.

Cheng told rediff.com that Universal is looking at a long-term presence in India, with sights on the next generation of music-lovers who will come into their own in 2015.

The Universal group includes labels such as David Geffens, Geffen Records, Dreamworks Records, A&M, Island Records, Polygram among others. Their repertoire includes music of Shania Twain, U2, Eric Clapton, Bee Gees, Boyzone, Elton John, Aqua, Sting, Bon Jovi, the Cranberries, Metallica, Louis Armstrong.

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