Zydus Lifesciences to Invest Up to Rs 43 Crore in Sri Lanka Pharma Joint Venture
New Delhi: Zydus Lifesciences Limited has entered into a Share Subscription and Shareholders' Agreement (SSSHA) with Sunshine Healthcare Lanka Limited and Zydus Sunshine Lifesciences (Private) Limited to acquire a 50% stake in Zydus Sunshine, establishing it as a 50:50 joint venture between the two companies for pharmaceutical manufacturing in Sri Lanka.
The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stating that Zydus Sunshine will primarily undertake the manufacturing of pharmaceutical products in Sri Lanka. The newly incorporated company currently has nil turnover and was incorporated on May 30, 2026.
According to the filing, Zydus will invest up to USD 5 million, in one or more tranches, subject to certain adjustments, through cash consideration to subscribe to 50% of the paid-up equity share capital of Zydus Sunshine. The subscription is expected to be completed within 90 working days from the execution of the Share Subscription and Shareholders' Agreement.The company stated that the transaction does not qualify as a related party transaction, and none of its promoters, promoter group entities or group companies have any interest in the subscription. No governmental or regulatory approvals are required for the acquisition.
As part of the joint venture, Zydus Sunshine will establish a state-of-the-art pharmaceutical manufacturing facility at the Horana Export Processing Zone in Sri Lanka. The facility will be developed on nearly four acres of land, and the foundation stone was laid on June 26, 2026, formally marking the commencement of the project.
The manufacturing unit will primarily cater to Sri Lanka's retail pharmaceutical market and is expected to strengthen domestic pharmaceutical production, reduce dependence on imports, improve access to high-quality medicines and enhance the resilience of the country's pharmaceutical supply chain.
The company stated that the partnership combines Zydus Lifesciences' global expertise in pharmaceutical manufacturing and technical know-how with Sunshine Healthcare's strong local market presence and healthcare distribution capabilities. The collaboration is expected to facilitate technology transfer, strengthen local manufacturing capabilities, create skilled employment, and contribute to the long-term development of Sri Lanka's healthcare ecosystem.
The filing further states that the Board of Directors of Zydus Sunshine will comprise six directors, with three directors nominated each by Zydus and Sunshine. The Chairperson will always be appointed by Zydus and will hold a casting vote on all matters except reserved matters. Any change in the capital structure of the joint venture will require the approval of both partners. The company also clarified that there is no potential conflict of interest arising from the subscription of shares.
Commenting on the development, Dr Sharvil P. Patel, Managing Director, Zydus Lifesciences Ltd., said the company believes strong local manufacturing capabilities are essential for resilient healthcare systems. He noted that the partnership with Sunshine Holdings combines Zydus' global manufacturing expertise with local market knowledge and represents an important step towards strengthening Sri Lanka's healthcare ecosystem and building sustainable pharmaceutical capabilities.
Shyam Sathasivam, Group CEO, Sunshine Holdings PLC, said the joint venture represents a strategic investment in Sri Lanka's healthcare security and industrial growth. He added that the collaboration aims to strengthen domestic pharmaceutical manufacturing, generate skilled employment and improve access to essential medicines for Sri Lankan consumers.
The project will operate under the oversight of the Board of Investment of Sri Lanka, with the Ministry of Health and the National Medicines Regulatory Authority (NMRA) serving as key stakeholders. The company stated that all products manufactured at the facility will comply with NMRA regulations and applicable pricing frameworks.
According to the Zydus Lifesciences press release and regulatory filing, the joint venture carries an overall investment commitment of more than USD 20 million to establish the manufacturing facility, reinforcing Zydus' more than three decades of presence in Sri Lanka while supporting Sunshine Healthcare's efforts to strengthen the country's healthcare infrastructure, pharmaceutical manufacturing capabilities and medicine supply security.
