Zydus Lifesciences and Sunshine Healthcare have established a 50:50 joint venture company - Zydus Sunshine Lifesciences Pvt. Ltd., marking a significant expansion into Sri Lanka's pharmaceutical manufacturing sector. According to Business Standard, the partnership combines Zydus' global expertise in pharmaceutical manufacturing and technical know-how with Sunshine's strong local market presence and healthcare distribution capabilities. The joint venture was incorporated on May 30, 2026 and currently has no business turnover as it is a newly formed company.
The joint venture has committed up to $20 million in investment to establish the pharmaceutical manufacturing facility in Sri Lanka, representing a significant increase from the previously reported $5 million commitment. As reported by Business Standard, the facility will be located at the Board of Investment zone in Horana and will be developed on nearly four acres of land. The foundation stone was laid on Thursday, marking the formal commencement of the project, with the plant focusing on manufacturing pharmaceutical products for Sri Lanka's retail market. The facility will be a state-of-the-art pharmaceutical manufacturing facility designed to strengthen domestic production and reduce the country's dependence on imported medicines.
Zydus has signed a Share Subscription and Shareholders' Agreement (SSSHA) with Sunshine Healthcare Lanka and Zydus Sunshine Lifesciences to acquire a 50% stake in the newly incorporated company. Under the agreement, Zydus will invest up to $5 million in one or more tranches through a cash subscription, with the total investment commitment now reaching over $20 million. The board of the joint venture will comprise six directors, with Zydus and Sunshine Healthcare each nominating three directors. Zydus will appoint the chairperson of the board, who will have a casting vote on all matters except reserved matters. Any changes to the company's capital structure will require approval from both partners. The company expects to complete the share subscription within 90 working days from the execution of the agreement.
Commenting on the development, Zydus Lifesciences Managing Director Sharvil P Patel emphasized the strategic importance of local capabilities for healthcare resilience. As reported by Business Standard, Patel stated, "We have always believed that strong local capabilities are key to resilient healthcare ecosystems. By combining Zydus' global experience and manufacturing excellence with Sunshine Holdings' local expertise, this collaboration marks an important step in strengthening Sri Lanka's healthcare ecosystem and building sustainable pharmaceutical capabilities for the future." Sunshine Holdings PLC Group CEO Shyam Sathasivam described the partnership as a strategic investment in Sri Lanka's healthcare security and industrial growth, adding that together with Zydus, they aim to enhance local pharmaceutical manufacturing, create skilled employment, and improve access to essential medicines for Sri Lankan consumers.
The project will operate under the oversight of Sri Lanka's Board of Investment, with the Ministry of Health and the National Medicines Regulatory Authority (NMRA) of Sri Lanka as key stakeholders. As reported by Business Standard, all products manufactured by Zydus Sunshine will comply with NMRA regulations and applicable pricing frameworks. This regulatory compliance ensures that the facility meets international standards while supporting Sri Lanka's domestic pharmaceutical manufacturing capabilities and contributing to the country's healthcare security objectives. The venture is also expected to facilitate technology transfer and create employment opportunities in Sri Lanka's pharmaceutical sector.
