Zydus Lifesciences, Sunshine Healthcare form JV for pharmaceutical manufacturing in Sri Lanka

Zydus Lifesciences and Sri Lanka's Sunshine Healthcare on Friday announced the setting up of a joint venture with an investment commitment of over USD 20 million to establish a pharmaceutical manufacturing facility in the island nation.

The company has entered into a share subscription and shareholders' agreement (SSSHA) with Sunshine Healthcare Lanka Ltd (Sunshine) and Zydus Sunshine Lifesciences (Pvt) Ltd (Zydus Sunshine), Zydus Lifesciences said in a regulatory filing.

Under the SSSHA, Zydus Lifesciences will subscribe 50 per cent of the total paid-up equity share capital of Zydus Sunshine for up to USD 5 million in one or more tranches, it added.

Zydus Sunshine will set up a manufacturing facility in Horana Export Processing Zone in Sri Lanka to manufacture pharmaceutical products, which will strengthen local production and reduce import dependence, the filing said.

This will improve access to high-quality medicines while supporting national supply chain resilience, it added.

Commenting on the development, Zydus Lifesciences Managing Director, Sharvil P Patel, said, "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, said the partnership is a strategic investment in Sri Lanka's healthcare security and industrial growth.

"Together with Zydus, we aim to enhance local pharmaceutical manufacturing, create skilled employment, and improve access to essential medicines for Sri Lankan consumers," he added.

Zydus Sunshine was incorporated on May 30, 2026, and its board will comprise six directors -- three directors each representing Zydus and Sunshine. The Chairperson shall always be appointed by Zydus and shall have a casting vote on all matters, other than reserved matters, the filing said.

The project will operate under the oversight of the Board of Investment, with the Ministry of Health and the National Medicines Regulatory Authority of Sri Lanka as key stakeholders.

All products will comply with NMRA (National Medicines Regulatory Authority) regulations and applicable pricing frameworks, the filing said.