Som Distilleries and Breweries Plummets 7% On Child Labour Allegations

Som Distilleries and Breweries (SDBL) stocks plummeted over 7 per cent in the Tuesday trading session following the report by the National Commission for Protection of Child Rights (NCPCR) that it had discovered 50 youngsters employed at the company's Madhya Pradesh factory.

More than fifty youngsters, including twenty young girls, were discovered at the plant, according to the NCPCR chairperson. He also mentioned that many children's hands had scorched flesh from contact with chemicals.

In accordance with juvenile justice and bonded employment rules, the commission has initiated a lawsuit against the company.

SDBL stock traded at Rs 115.85 with 7.26 per cent loss in the afternoon session on the National Stock Exchange (NSE). 

“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,” the Madhya Pradesh Chief Minister’s Office said on social media platform X.

Som Distilleries and Breweries highlighted in an exchange filing that the issues are with a private associate that deals in country spirits, not with Som Distilleries and Breweries.

Private contractors were held accountable by Som Distilleries for the accident, claiming that they may not have carried out the age verification procedure completely.

"The company has extended full cooperation to the authorities regarding the issue, and terminated the services of the vendor," stated the distiller.