Unrest in Venezuela: These high-stakes Indian energy, pharmaceutical and metals companies are under scrutiny

The US 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 country are once again the center of attention.

While India’s direct trade ties with Venezuela have weakened over the years due to sanctions and payment risks, several Indian companies in the public and private sectors still maintain stakes, subsidiaries, overseas offices or historical business ties in the country. The latest developments have raised questions about asset security, future cash flows and the viability of long-term operations.

The most exposed oil and gas companies

India’s state-owned energy companies represent the most visible exposure.

ONGC Videsh (OVL)the foreign arm of ONGC, has stakes in two oil projects in Venezuela, making it one of the most direct Indian investors in the country’s hydrocarbon sector. Indian Oil Company (IOC) also has exposure through its equity participation as part of a consortium in the Carabobo heavy oil project in Venezuela.

Oil Indiameanwhile, is a minority partner in a Venezuelan oil joint venture alongside OVL and IOC. Even though production and monetization have been limited for years, these assets remain on the books and are sensitive to changes in political control or sanctions regimes.

Among private refiners, Trusted Industries And Nayara Energy have historically imported Venezuelan crude, particularly heavy grades suitable for 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 supply options if trade channels reopen or tighten.

Engineering & Pharma presence

Apart from energy, Engineers India (EIL) has an overseas office in Caracas to support international business activities. Even if not directly linked to production assets, a presence on the ground exposes operations to administrative, regulatory and security risks during times of unrest.

Indian pharmaceutical companies are also exposed to varying degrees. Sun Pharma operates through a registered Venezuelan subsidiary, while Glenmark Pharma executes operations through a locally saved branch. Cipla has historically exported essential medicines to Venezuela, highlighting the sector’s humanitarian and commercial ties.

Dr. Reddy’s Laboratorieswhich previously had a subsidiary in the country, withdrew completely in 2024 – a move that now seems prescient given the renewed volatility.

Focus on industrial assets

In the field of metals and industry, Jindal steel and power stands out for its operations related to Venezuela’s largest iron ore complex. Any disruption to mining, logistics or export infrastructure could have implications for production and valuations.

Market experts say the immediate financial impact on Indian companies may be limited, given the reduced size of operations compared to a decade ago. However, geopolitical uncertainty raises long-term concerns about asset recovery, contract enforceability, and potential writedowns if conditions deteriorate further. For now, investors are awaiting clarity on sanctions policy, governance changes and international responses to the US operation.