The state government of Madhya Pradesh has ordered the license suspension of Som Distilleries due to a case of child labor at the manufacturing site.
Founded in 1986, Som Distilleries & Breweries Limited is a Beverage Manufacturing company with its headquarters in Bhopal, Madhya Pradesh. The group is an AlcoBev manufacturer that is into the production of Beer, Whisky, Vodka, Rum, Gin, ready-to-drink beverages & Country Liquor. They have a network of breweries, distilleries, support industries & a distribution network across the country. With the assurance of quality, Som Group has diversified to sell brands like Hunter, Blackfort, & Power Cool. Their philosophy is respect for their shareholders to gain their trust and meet their expectations.
Recent News:
On Wednesday, 19 June, the government confiscated Som Group distillery and temporarily suspended the plant’s manufacturing license. This was the consequence of a police investigation into Som after the National Commission for Protection of Child Rights(NCPCR) found 39 boys and 20 girls working at the factory. The photos of children’s burned hands due to contact with chemicals were conflicting with the promise of the company to respect its staff. The police informed that the minors were appointed by a unit of SOM Distilleries without police verification. They confirmed that the license is suspended for 20 days or until the Labour Department approves the resumption of activities.
Company’s Response:
In an exchange filing on June 19, Som Distilleries & Breweries Limited clarified the issue by saying that the concerns mentioned by various media channels are related to their associate Private Limited Company which deals in country liquor primarily, and not the listed company. They also went on to defend their stance by saying that the labor was supplied to the company by contractors who are at fault here due to their lack of proper age verification done of the
workers being allowed to work at that company. Through the directors of the company, SOM distilleries terminated the services of the vendor to show their cooperation with the authorities.
Conclusion
In light of current events, Som Distilleries shows a downward trend on NSE with a fall of 8% in the past 5 days. The company hit its low of Rs.108 on 18 June with the emergence of news of child labor at their distilleries.
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