Zydus Lifesciences Partners with Sunshine Healthcare to Establish Pharmaceutical Manufacturing in Sri Lanka
Zydus Lifesciences Limited has entered into a strategic partnership with Sunshine Healthcare Lanka Limited to establish a pharmaceutical manufacturing joint venture in Sri Lanka. The collaboration aims to strengthen local production and reduce import dependence for high-quality medicines in the regional market.The company is subscribing 50% of the total paid up equity share capital in Zydus Sunshine Lifesciences (Private) Limited, which will operate as a 50:50 joint venture between Zydus and Sunshine Healthcare.
This initiative sees Zydus establishing a state-of-the-art manufacturing facility within Sri Lanka's healthcare ecosystem. The plant is slated to be located in the Horana Export Processing Zone and will focus on manufacturing pharmaceutical products for the local retail market.
The joint venture combines Zydus's global expertise and technical know-how with Sunshine's strong local presence and distribution capabilities. The facility development involves nearly four acres of land, marking a significant commitment to supporting national supply chain resilience in Sri Lanka.
Details regarding the subscription of shares and the resulting joint venture are summarized below:
| Aspect | Details |
|---|---|
| Target Entity | Zydus Sunshine Lifesciences (Private) Limited |
| Industry | Pharmaceuticals |
| Joint Venture Stake | 50% held by Zydus, and 50% by Sunshine. |
| Investment Cost | Upto USD 5 million in one or more tranches. |
| Nature of Consideration | Cash consideration. |
| Target Entity Status | Recently incorporated (May 30, 2026). |
The subscription of shares is expected to be completed within a period of 90 working days from the execution of the Share Subscription and Shareholders' Agreement.
Regarding the governance of Zydus Sunshine Lifesciences, the Board will comprise six directors in total, with three representing Zydus and three representing Sunshine. The Chairperson position shall always be appointed by Zydus and will hold a casting vote on all matters except reserved matters. Furthermore, any amendment to the capital structure of the company requires mutual approval from both Zydus and Sunshine.
The transaction does not constitute a related party transaction, and neither Zydus nor its group companies have an interest in the acquired entity that would qualify it as such.
ZYDUSLIFE Stock Price Movement
Zydus Lifesciences Limited saw its stock climb, closing out the session 0.25% higher to settle at ₹1101.40. The equity traded on a volume of 1,182,386 shares as the market concluded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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