Ever since America took military action against Venezuela, the listed companies of India have come into focus, which have relations with Venezuela like energy assets, crude oil, engineering services and pharma. The attacks targeting Venezuela’s air defense system come after months of increasing pressure on the government of President Nicolas Maduro, which has increased uncertainty among investors. Let us also tell you what effect this may have on the companies doing business in or present in Venezuela.
Profit or loss for Reliance and ONGC
India’s business in Venezuela is spread across many sectors, of which the oil and gas sector is prominent. ONGC has equity stake in two oil projects in the country, giving it direct upstream presence. In the refining sector, Reliance Industries (RIL) has historically been a major importer of Venezuelan crude. According to international brokerage firm Jefferies, both companies are seen as major beneficiaries from a potential US-led takeover and restructuring of Venezuela’s oil industry. Analysts believe both companies will benefit in terms of supply, cash flow and valuation over time if restrictions on Caracas are relaxed or lifted. Shares of Reliance Industries reached a record high on Monday, while shares of ONGC closed down by about 2 percent.
Impact may be visible on these companies also
- Indian Oil Corporation is a consortium partner in Venezuela’s Carabobo Heavy Oil Project and is involved through equity stake. Oil India is a minority partner in a Venezuelan joint venture with ONGC and Indian Oil.
- Mangalore Refinery and Petrochemicals has also received oil from Venezuela in the past. Any disruption in Venezuelan oil production, exports or logistics after the US attacks could affect these companies.
- Apart from the energy sector, Engineers India has an overseas office in Caracas to support its international business activities, thereby maintaining its ground presence in the country.
- Indian pharmaceutical companies are also linked to the country. Sun Pharma has a registered subsidiary in Venezuela, while Glenmark Pharma operates through a locally registered subsidiary in Venezuela.
- Cipla has historically exported essential medicines to Venezuela, indicating trade engagement. Dr. Reddy’s Laboratories previously had a subsidiary in the country, but it sold its entire stake in 2024, reducing its presence in the country.
- In the metals sector, Jindal Steel operates Venezuela’s largest iron ore complex, giving it a significant presence in the country.
Mixed responses are emerging
Operations such as the US disabling Venezuela’s air defense system and the arrest of President Nicolas Maduro in a swift military raid in Caracas have received mixed responses at the international level. The United Nations and many legal experts have raised questions about the legality of this action. For Indian companies with ties to Venezuela, this latest development points to the risks associated with geopolitical tensions and cross-border operations, especially in sectors that have experienced chronic political and economic instability.