After decades of building its reputation on nostalgic music, Saregama India Ltd is dramatically increasing its investment in live entertainment. The historic music label is placing significant bets on concerts, musicals, and children's shows to transform its extensive music catalog into a powerful growth engine.
Three-Pronged Strategy for Live Entertainment
The RP-Sanjiv Goenka Group company, which entered the live events space approximately two years ago, has developed a comprehensive three-part strategy. Saregama has already organized around 100 shows across 40 cities and nine countries, demonstrating its commitment to this new business vertical.
The company is specifically targeting younger Gen Z and millennial audiences with artist-led performances featuring popular stars like Diljit Dosanjh and Himesh Reshammiya. Simultaneously, it aims to engage older audiences with intellectual property-based productions such as 'Disco Dancer' - musicals built around classic Bollywood films whose music rights Saregama controls.
For the youngest demographic, Saregama has launched 'Say Cheese Grandpa', an interactive show series designed for children under ten years old. Looking ahead, the company also plans to develop a stand-up comedy pipeline and will organize a music festival called 'UN40' in Bengaluru during March next year, specifically targeting Gen Z audiences.
Financial Performance and Growth Strategy
Saregama's recent financial results highlight why this strategic shift is timely. The company reported a 2% year-on-year decline in consolidated net profit at ₹43.8 crore for the quarter ending September, compared to ₹44.9 crore during the same period last year. Revenue from operations also decreased by 5% to ₹230 crore from ₹241.8 crore in the corresponding quarter of FY25.
In striking contrast, the live events vertical surged dramatically to ₹22.2 crore from just ₹0.6 crore a year earlier, demonstrating the significant potential of this new business direction.
Vikram Mehra, Managing Director of Saregama India, explained the company's approach: "We have just dipped our toes into live events based on consumer research, which gave us confidence to start building this vertical in a much bigger fashion. We started only with artist-led music concerts with Diljit and Himesh Reshammiya and are also creating IP-based formats."
Expanding Reach Across India and International Markets
Saregama's live events strategy targets both domestic and international audiences familiar with Indian languages and culture. The Diljit Dosanjh tour has already traveled to Bangkok, Hong Kong, Australia, and New Zealand, while Reshammiya is scheduled to perform in Dubai.
Domestically, the company is focusing on major Indian cities including Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Lucknow, Ahmedabad, and Indore, with plans to eventually expand to smaller markets like Bhopal and Rajkot.
Mehra emphasized Saregama's hands-on approach: "Every show done in India is 100% produced by us. We are not following the format of conceptualizing the show and selling it to a local promoter. This means we are hiring the venue, managing the security and stage, and directly taking the financial liability of that particular show." The company is implementing this comprehensive production model for some international events as well.
Tapping India's Booming Live Events Market
Saregama's strategic pivot comes as India's live events industry experiences remarkable growth. According to the Federation of Indian Chambers of Commerce and Industry (FICCI) and consulting firm EY, India's live events business grew 15% year-on-year to cross ₹10,000 crore in 2024, with projections indicating it will reach nearly ₹12,000 crore by the end of 2025.
The company faces competition from established players including BookMyShow, which holds an estimated 40-50% market share, along with Nazara Technologies, Nodwin Gaming, Zomato's District, AEG Asia Pacific, and Reliance Industries' Nita Mukesh Ambani Cultural Centre (NMACC). Esports and gaming major JetSynthesys has recently entered the concert production business as well.
Uday Sodhi, Senior Partner at Kurate Digital Consulting, commented on Saregama's strategic move: "Live events are a natural and logical business extension for a company like Saregama with a significant music catalogue and connections in the industry. The space may be seasonal and not entirely steady given weather conditions in India but overall, music, artists and streaming content feed into each other and make for good synergy."
Looking forward, Saregama aims to position itself as an IP-driven company rather than merely a music label. The company plans to eventually monetize its live shows on digital platforms through online streaming, building on its recent acquisition of a majority stake in youth-focused digital content creator Pocket Aces Pictures Pvt Ltd.
