Music company Saregama India has signed the biggest ever music contract with the Indian film industry, striking a $6m accord with leading production company Puja Entertainment.

Saregama, formerly named the Gramophone Company of India, takes the music rights to the next five films from Puja, one of the top Hindi film producers in Mumbai. All five films are expected to be completed and released within three years.

The first film to be commissioned is a star-laden project with leading local talent such as Anil Kapoor, Abhishek Bachchan and Fardeen Khan. Anupam Kher directs, with music by Anu Malik. The film is scheduled for release towards the end of 2001.

Puja, founded by cassette manufacturing businessman Vashu Bhagnani, has produced Indian blockbusters such as Coolie No.1, Hero No.1 and Pyaar Kiya. The films have been hits as much in terms of box-office as their soundtracks.

Saregama has already signed 18 films with a view to release the music over the next 18 months. The company is negotiating for further soundtrack rights with major film houses including Rajshris, Raakesh Roshan, Yash Chopra and RK Films and others.