Zydus Lifesciences Partners Sunshine to Launch Pharma Manufacturing Venture in Sri Lanka

Zydus Lifesciences Ltd has entered into a 50:50 joint venture with Sri Lanka-based Sunshine Healthcare Lanka Ltd to establish a pharmaceutical manufacturing business in the country, as per a regulatory filing dated June 26, 2026.  

The partnership will operate through a newly incorporated entity, Zydus Sunshine Lifesciences (Private) Limited, which will manufacture pharmaceutical products for the Sri Lankan market. 

Investment Details 

As part of the agreement, Zydus will subscribe to 50% of the paid-up equity share capital of the joint venture through a cash investment of up to $5 million in one or more tranches, subject to certain adjustments. The company said the share subscription is expected to be completed within 90 working days from signing the agreement.  

Zydus Sunshine was incorporated on May 30, 2026, and has no turnover as it is a newly formed company. 

Facility to Support Local Production 

The manufacturing unit will be built at the Board of Investment's Horana Export Processing Zone on nearly four acres of land. According to the companies, the overall investment commitment for the project exceeds $20 million.  

The plant will manufacture medicines for Sri Lanka's retail market with the objective of increasing domestic production and reducing dependence on imported pharmaceutical products. 

Joint Venture Structure 

The board of the joint venture will have six directors, with Zydus and Sunshine appointing three directors each. The chairperson will be nominated by Zydus and will have a casting vote on matters other than reserved matters.  

Any changes to the company's capital structure will require approval from both partners. The companies also stated that the transaction is not a related-party transaction. 

Regulatory Oversight 

The project will operate under the oversight of Sri Lanka's Board of Investment, while the Ministry of Health and the National Medicines Regulatory Authority will be key stakeholders.  

Products manufactured at the facility will comply with applicable regulatory requirements and pricing frameworks. The companies said the venture is also expected to support technology transfer and skilled employment in Sri Lanka's pharmaceutical sector. 

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Zydus Lifesciences Share Price Performance  

As of June 25, 2026, 3:30 pm, Zydus Lifesciences Ltd share price closed at ₹1,100.70, up 0.15% from the previous closing price. 

Conclusion 

The joint venture gives Zydus Lifesciences and Sunshine Healthcare equal ownership in a new pharmaceutical manufacturing business in Sri Lanka. The facility is expected to expand local manufacturing capacity while supplying medicines for the country's domestic market. 

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