Som Distilleries falls 16% on likely child labour at Madhya Pradesh factory

Som Distilleries child labour: Labour at the associate company is supplied by contractors. It may be the fault of the contractor, Som Distilleries has clarified

Som Distilleries child labour news: Som Distilleries and Breweires share price tumbled 15.8 per cent to Rs 105 apiece on the BSe on Tuesday after reports emerged of chikd labour at the company's Madhya Pradesh factory.

According to several reports, at least 58 children, including 20 girls, were found to be working in a liquor factory in Madhya Pradesh's Raisen district, with the skin on their hands burnt due to exposure to chemicals.

This factory, according to National Commission for Protection of Child Rights (NCPCR) chairperson Priyank Kanoongo, fell under the premises of Som Distilleries and Breweries.

"Action is being taken to rescue the children and register an FIR. Notice is being issued to the [State] government to take action against the excise officer," Kanoongo wrote on social media platform X (formerly Twitter).

 

बाल श्रम निरोधक माह के अंतर्गत @NCPCR_ को बचपन बचाओ आंदोलन से प्राप्त शिकायत के आधार पर आज रायसेन ज़िले में सोम डिस्टलरी नामक शराब बनाने वाली फ़ैक्टरी में निरीक्षण किया गया जहां 50 से अधिक बच्चे शराब बनाने का काम करते हुए पाए गए हैं इनमें 20 लड़कियाँ भी हैं।
यह संस्थान सरकार के… pic.twitter.com/8KrabMZyZB

— प्रियंक कानूनगो Priyank Kanoongo (मोदी का परिवार) (@KanoongoPriyank) June 15, 2024

Meanwhile, the Chief Minister's Office's X handle said "The case of child labour during a raid on a factory in Raisen district has come to my notice. This matter is very serious. In this regard, detailed information has been obtained from the officials of Labor, Excise and Police departments and instructions have been given for appropriate action. Strictest action will be taken against the culprits."

At 9:43 AM, Som Distilleries' share price was down nearly 13 per cent to Rs 108.9 per share as against 0.35 per cent rise in the benchmark BSE Sensex.

On its part, Som Distilleries informed the exchanges that these concerns were not related to Som Distilleries and Breweries Limited but to their Associate Private Limited company, which deals in country liquor primarily, and is not the listed company as reported.

"Also, labour at the associate company is supplied by contractors. It may be the fault of the contractors who may not have got proper age verification done of the workers being allowed to work at that company. That company has extended full cooperation to the authorities regarding the issue and have terminated the services of the vendor through the directors of that company," it added. READ THE FILING HERE

With today's decline, Som Distilleries' stock was quoting near its 52-week low level of Rs 84.52 per share.

Som Distilleries is engaged in the brewing, fermentation, bottlings, canning, and blending of beer with India made foreign liquor (IMFL).

Its flagship brands include Hunter, Black Fort, Power Cool and Woodpecker in the Beer segment and Pentagon, Milestone 100 whisky and White Fox vodka in the IMFL segment. Its other IMFL brands include Genius, and Sunny.

The company has a market cap of Rs 2,129.6 crore.