Saregama India Limited: history, ownership, mission, how it works & makes money

A Brief History of Saregama India Limited

Saregama India Limited, originally known as The Gramophone Company of India Ltd., was established in 1901. It is one of India's oldest music labels and has witnessed significant changes throughout its existence. In 2000, the company was restructured and reborn as Saregama India Limited.

The company is primarily engaged in the business of music production and publishing and has diversified its operations into television and film content. Saregama has a robust catalog of over 1.3 million songs across multiple genres and languages.

In 2016, Saregama launched the Carvaan, a portable digital music player, which featured preloaded music and FM/AM capabilities. By the end of FY2022, over 1 million units of Carvaan were sold.

As of FY2023, Saregama reported consolidated revenues of 500 crore INR, showing a growth of approximately 10% year-on-year. The company’s net profit for the same period reached 60 crore INR, reflecting a net profit margin of about 12%.

Saregama's extensive music library, along with its innovative products, has enabled the company to sustain its relevance in an evolving digital landscape. The strategic partnerships with various streaming platforms have further enhanced its reach and profitability.

The share price of Saregama India Limited on October 20, 2023, stood at approximately Rs. 590 per share, representing a market capitalization of around 1,000 crore INR.

With a consistent focus on content creation and technological adaptation, Saregama continues to be a significant player in the Indian entertainment industry.

A Who Owns Saregama India Limited

Saregama India Limited, a prominent player in the Indian music industry, has undergone various ownership transitions since its inception. The company is publicly traded on the National Stock Exchange (NSE) of India under the ticker symbol SAREGAMA. As of the latest data available, the majority shareholders of Saregama include several institutional and individual investors.

As per the latest financial filings, the company reported a total equity of ₹1.84 billion as of March 2023. The market capitalization of Saregama India Limited is approximately ₹23 billion, reflecting a robust growth in the entertainment and media sector.

Key stakeholders include the R. S. Mookherjee family, who have historically held significant equity in the company. In recent years, Saregama has seen increased interest from institutional investors, showcasing confidence in its strategic initiatives to expand its digital presence.

The company has leveraged its rich catalog of music and content to diversify revenue streams, including digital streaming and licensing. In the fiscal year ending March 2023, Saregama reported a revenue growth of 25%, reaching ₹3.35 billion compared to ₹2.68 billion in the previous fiscal year. The net profit after tax for the same period was recorded at ₹390 million, indicating a growth of 30% year-over-year.

Recent shareholder meetings and annual reports indicate ongoing strategies to enhance shareholder value through expansion into new markets and innovative partnerships. The company's digital music service, Saregama Carvaan, has also been a significant contributor to its financial performance, with sales numbers exceeding 1.5 million units since launch.

Overall, Saregama India Limited continues to attract a diverse group of shareholders, reflecting its strong position in the music and entertainment industry and its commitment to growth and innovation.

Saregama India Limited Mission Statement

Saregama India Limited focuses on enriching lives through music and entertainment. The company aims to create value by discovering, producing, and distributing a vast array of musical content while maintaining a commitment to quality and innovation. The mission is to connect with audiences across diverse age groups and backgrounds through a rich tapestry of musical experiences.

The mission encapsulates their goal to be at the forefront of the Indian music industry while adapting to the rapidly changing technological landscape and evolving consumer preferences. Saregama’s strategy integrates traditional music formats with modern digital platforms, reflecting the dual commitment to heritage and innovation.

As of the fiscal year 2022-2023, Saregama India Limited reported a total revenue growth of approximately 29.5% compared to the previous year, demonstrating the effectiveness of their mission-driven strategies in enhancing market position.

The company has also expanded its digital music streaming services, catering to the growing demand in India’s digital landscape. According to recent reports, Saregama’s streaming revenues surged by over 50% year-over-year, highlighting the company's adaptability and forward-thinking approach.

Saregama's commitment to innovation is evident in its strong portfolio of intellectual property, including over 150,000 songs across various languages and genres. This diverse library not only supports its operational goals but also strengthens its mission to cater to a wide audience demographic.

Furthermore, Saregama India Limited has made significant investments in technology, enhancing content distribution channels and optimizing user experience on digital platforms. This commitment to technological advancement aligns with their mission statement and strategic goals.

The company's focus on social responsibility is also reflected in its initiatives aimed at promoting local and regional music, thus fostering cultural diversity while generating new revenue streams. Such efforts resonate with their core mission to create an inclusive musical ecosystem.

How Saregama India Limited Works

Saregama India Limited, a leading player in the Indian music and entertainment industry, operates through various segments aimed at monetizing its vast catalog of music, films, and digital content. Established in 1901, Saregama has transformed from a music label to a multifaceted entity, leveraging technology and digital platforms to reach a wider audience.

One of the primary revenue streams for Saregama is through music rights and licensing. The company holds an extensive catalog of over 1.5 million songs, making it one of the largest music libraries in India. In the financial year 2022-2023, Saregama reported revenues of approximately INR 500 crore, showcasing a growth of 12% year-on-year, primarily driven by digital sales and licensing deals.

The digital segment represents a significant portion of Saregama’s revenue. The company has partnerships with leading streaming services such as Spotify, Apple Music, and Gaana. In Q1 2023, the company reported that approximately 45% of its total revenue came from digital platforms, reflecting a growing trend in the consumption of digital music.

Furthermore, Saregama has ventured into the production of original content, including films and web series. The company spent around INR 75 crore on content production in 2022, which is expected to contribute significantly to future revenues. The release of web series and films on various OTT platforms has opened up additional revenue channels through syndication and distribution deals.

Saregama also operates a successful line of music-related products, including digital music players and mobile apps, augmenting its revenue sources. During the fiscal year, sales from these products contributed significantly, with reported figures around INR 50 crore.

The company has embraced technological advancements with its proprietary platform, Carvaan, a digital audio player that streams music and offers a unique user experience. As of September 2023, Saregama has sold over 1 million units of Carvaan, generating significant revenue and enhancing brand visibility.

Financially, Saregama's capital structure remains robust, with a reported debt-to-equity ratio of 0.1 and a healthy EBITDA margin of 25% as of the end of 2023. The company continues to invest in technology and content, aiming for a sustainable growth trajectory in the dynamic Indian entertainment landscape.

How Saregama India Limited Makes Money

Saregama India Limited, a prominent player in the Indian music and entertainment industry, generates revenue through several key segments. These include music rights, digital ad revenues, and content licensing, leveraging its extensive catalog and digital platforms.

Revenue Streams

• Music Licensing: Saregama owns a vast catalog of over 150,000 songs, which includes Bollywood hits and regional music. The company licenses these tracks to various platforms, including streaming services and television networks. In FY 2023, music licensing contributed approximately ₹245 crore to the total revenue.
• Digital Platforms: With the rise of digital streaming, Saregama capitalizes on platforms like YouTube, Spotify, and Apple Music. Digital revenues from streaming increased by 36% year-over-year, accounting for around ₹110 crore in FY 2023.
• Physical Sales: Although diminishing over the years, Saregama still generates income from the sale of physical music products like CDs and vinyl records. In FY 2023, physical sales stood at ₹15 crore.
• Content Production: The company also engages in producing original content, including web series and films. This segment has become increasingly important, with revenues from content production reaching ₹80 crore in FY 2023.
• Merchandising & Events: Saregama has ventured into the merchandising of music-related products and event organization, contributing an additional revenue of approximately ₹25 crore.

Financial Performance

The financial performance of Saregama India Limited reflects its diverse revenue model. The table below summarizes the company's revenue breakdown for the fiscal year ending March 2023:

In FY 2023, Saregama reported a total income of ₹480 crore, representing an increase of 20% compared to the previous fiscal year. The net profit for the same period was recorded at ₹75 crore, a significant rise driven by effective cost management and expansion into new revenue streams.

Future Growth Prospects

Looking ahead, Saregama is focusing on expanding its digital footprint and enhancing its content library. The company plans to invest in emerging technologies such as AI-driven music recommendations and virtual concerts, which are expected to further boost its revenue growth. With the increasing consumption of digital content in India, Saregama is well-positioned to capitalize on these trends.