It was distributed by OMI Music Inc. Shashi Gopal was the managing director of Magnasound.
Shashi Gopal founded Magnasound in 1989 with his wife Kalpana and brother-in-law Madhav Das.
In the early 1990s, the company gained a reputation for signing young artists like Daler Mehndi, Baba Sehgal, and Alisha Chinai, as well as acclaimed rock bands Rock Machine and 13AD[2] Already established artists like A. R. Rahman and Asha Bhosle also released albums for the label.
Carnatic vocalist Bombay Jayashri became its flagship classical artist when she signed with Magnasound in 1994.
Magnasound was also one of the first Indian labels to concentrate on music videos, taking advantage of the new MTV India channel.