Low PE Pharma Major Commits Over USD 20 Million to Establish Pharmaceutical Manufacturing Joint Venture in Sri Lanka

Gift Nifty fell over 100 points on Friday morning, indicating subdued global market sentiment. However, Indian equity markets remain closed today on account of Muharram. On Friday, Indian benchmark indices ended marginally higher, with the Nifty 50 gaining 34.35 points, or 0.14 per cent, to close at 24,056.00. Zydus Lifesciences share price also ended the session higher, rising 0.19 per cent to Rs 1,101.40.

Zydus Forms 50:50 Joint Venture in Sri Lanka

Zydus Lifesciences Limited has entered into a Share Subscription and Shareholders' Agreement with Sunshine Healthcare Lanka Limited and Zydus Sunshine Lifesciences (Private) Limited to acquire a 50 per cent stake in Zydus Sunshine, creating a 50:50 joint venture in Sri Lanka.

The company will invest up to USD 5 million, in one or more tranches, subject to customary adjustments. The transaction is expected to be completed within 90 working days from the execution of the agreement.

Partners Commit Over USD 20 Million

Apart from Zydus' equity investment, the joint venture partners have committed to invest over USD 20 million to establish a state-of-the-art pharmaceutical manufacturing facility at the Horana Export Processing Zone in Sri Lanka.

The foundation stone for the project was laid on June 26, 2026, marking the formal commencement of development. The facility will be built on nearly four acres of land within the Board of Investment (BOI) zone.

Facility to Boost Domestic Drug Manufacturing

The manufacturing plant will produce pharmaceutical products primarily for Sri Lanka's domestic retail market. The project aims to strengthen local pharmaceutical manufacturing, reduce dependence on imported medicines, improve the availability of high-quality drugs and enhance the country's healthcare supply chain resilience.

The joint venture will combine Zydus Lifesciences' global pharmaceutical manufacturing expertise and technical capabilities with Sunshine Holdings' strong domestic healthcare distribution network and market presence.

The board of the joint venture will comprise six directors, equally nominated by both partners. The Chairperson will be nominated by Zydus and will hold a casting vote on matters other than reserved matters.
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Management Commentary

Commenting on the partnership, Dr. Sharvil P. Patel, Managing Director, Zydus Lifesciences Ltd., 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."

Shyam Sathasivam, Group CEO, Sunshine Holdings PLC, added: "This 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."

About Zydus Lifesciences

Zydus Lifesciences Ltd is one of India's leading pharmaceutical companies engaged in the research, development, manufacturing and marketing of a wide range of formulations, biologics, vaccines and active pharmaceutical ingredients (APIs). The company has a strong global presence across regulated and emerging markets and continues to expand its international manufacturing footprint through strategic partnerships and investments.

According to the March 2026 shareholding pattern, Domestic Institutional Investors (DIIs) increased their stake in the company to 11.20 per cent from 11.08 per cent, while Foreign Institutional Investors (FIIs) marginally reduced their holding to 6.95 per cent from 7.06 per cent.

What are your views on Zydus Lifesciences' expansion into Sri Lanka through this joint venture? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.