The film won the Best Audience and Best Music Score awards. Co-produced by Anurag Kashyap, Sanjay Singh and UTV Motion Pictures, the music and lyrics for the movie have been composed and written by Amit Trivedi and Amitabh Bhattacharya respectively.
"Udaan" has also won the second place in the Campania Regional Council Awards based on the results of the juror's votes.
"I'm honoured and delighted with the three awards that we have won at Giffoni. These are first awards for 'Udaan', hopefully the first of many to come. I'm especially happy for Amit Trivedi and Amitabh Bhattacharya who are the unsung heroes of the film, " said Motwane in a statement.
Trivedi too was ecstatic after the win. "Winning the Best Music Score at one of world's largest children's film festivals is definitely a matter of pride for me and the entire team of 'Udaan', " he said.
"International audiences have started appreciating Indian music which is very encouraging for music directors like us. This very well proves that our music is not only loved by our fellow Indians, but is also well received by masses worldwide and meeting global tastes, " he added.
Featuring 17-year-old Rajat Barmecha in the lead, "Udaan" is about a rebellious child, who after being expelled from boarding school is forced to live with his authoritarian and oppressive father, played by Ronit Roy, in the steel town of Jamshedpur.
It also stars another popular TV actor Ram Kapoor.
The Giffoni International Film Festival, which concluded July 31, is the world's largest children's film festival in Europe. It takes place in Giffoni Valle Piana in Southern Italy.
"'Udaan' winning awards at the Giffoni Film Festival Awards is a matter of great pride and honour for us. The film has scored extremely well with the critics and the audiences alike in India and even internationally, " said Amrita Pandey, senior vice president - international distribution and syndication, UTV Motion Pictures.
"Udaan" was also selected for the Un Certain Regard category at this year's 63rd Cannes International Film Festival.