The two friends, from Ramanathapuram District and working in a textile mill here, had consumed liquor at a TASMAC shop last night when a quarrel broke out.
In a fit of anger and inebriated condition, Ashok hit Kannan with a big boulder, injuring him seriously.
Though Kannan was admitted to the government hospital here after first aid at a private hospital, he died without responding to treatment this morning, police said.
A murder case has been registered and search was on for Ashok, they said.