Venezuela turmoil: These Indian energy, pharma and metal firms with high stakes are under watch

The United States’ military operation in Venezuela has reignited geopolitical and economic uncertainty around one of the world’s most sanctions-hit energy producers — and Indian companies with historical or operational exposure to the Latin American nation are once again in focus.  

While India’s direct trade links with Venezuela have weakened over the years due to sanctions and payment risks, several Indian public- and private-sector firms still retain equity stakes, subsidiaries, overseas offices, or legacy commercial ties in the country. The latest developments have raised questions over asset security, future cash flows, and the viability of long-term operations.  

Oil & gas firms most exposed  

Indian state-run energy companies account for the most visible exposure.  

ONGC Videsh (OVL), the overseas arm of ONGC, holds equity stakes in two oil projects in Venezuela, making it one of India’s most direct investors in the country’s hydrocarbons sector. Indian Oil Corporation (IOC) is also exposed through its equity participation as part of a consortium in Venezuela’s Carabobo heavy-oil project.  

Oil India, meanwhile, is a minority partner in a Venezuelan oil joint venture alongside OVL and IOC. While production and monetisation have been constrained for years, these assets remain on the books and are sensitive to shifts in political control or sanctions regimes.  

Among private refiners, Reliance Industries and Nayara Energy have historically imported Venezuelan crude, particularly heavy grades suited to complex refineries. Mangalore Refinery and Petrochemicals (MRPL) has also imported Venezuelan oil in the past, according to reports. Any prolonged instability could further complicate future sourcing options if trade channels reopen or tighten.  

Engineering & pharma presence   

Outside energy, Engineers India (EIL) maintains an overseas office in Caracas to support international business activities. While not directly linked to production assets, an on-ground presence exposes operations to administrative, regulatory, and security risks during periods of unrest.  

Indian pharmaceutical companies also have varying degrees of exposure. Sun Pharma operates through a registered Venezuelan subsidiary, while Glenmark Pharma runs operations via a locally registered arm. Cipla has historically exported essential medicines to Venezuela, underscoring the sector’s humanitarian and commercial links.  

Dr. Reddy’s Laboratories, which earlier had a subsidiary in the country, exited fully in 2024 — a move that now appears prescient given the renewed volatility.  

Any disruption to mining, logistics, or export infrastructure could have implications for output and valuations. Market experts say the immediate financial impact on Indian companies may be limited, given the reduced scale of operations compared with a decade ago.

However, geopolitical uncertainty raises longer-term concerns around asset recoverability, contract enforceability, and potential write-downs if conditions deteriorate further. For now, investors are watching for clarity on sanctions policy, governance changes, and international responses to the US operation.