Zydus Lifesciences Limited has entered into a Share Subscription and Shareholders' Agreement with Sunshine Healthcare Lanka Limited to form a 50:50 joint venture in Sri Lanka through Zydus Sunshine Lifesciences (Private) Limited. Zydus will subscribe to 50% of the paid-up equity share capital of the joint venture entity for up to USD 5 million in cash.
Zydus Sunshine Lifesciences will set up a pharmaceutical manufacturing facility at the Board of Investment zone in Horana, Sri Lanka, covering nearly four acres. The foundation stone was laid on June 26, 2026, marking the formal commencement of the project. The facility will manufacture pharmaceutical products for Sri Lanka's retail market, strengthening local production and reducing import dependence.
The subscription is expected to be completed within 90 working days. Zydus Sunshine Lifesciences was incorporated on May 30, 2026 and has nil turnover as a recently incorporated entity. The joint venture will focus on manufacturing pharmaceutical products in Sri Lanka.
The board of the joint venture will comprise six directors, with three each appointed by Zydus and Sunshine. The chairperson will be appointed by Zydus and will hold a casting vote on all matters except reserved matters.
The transaction is not a related party transaction, and none of the promoter or promoter group companies have any interest in the subscription. The joint venture is expected to support technology transfer, build local manufacturing capability, and create employment in Sri Lanka's healthcare sector.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.