Shares of Som Distilleries and Breweries Ltd plummeted 15% on 18 June after the National Commission for Protection Of Child Rights (NCPCR) announced that they had identified 50 children working at the company’s Madhya Pradesh plant. 

However, the company has denied responsibility for employing children and said that the private contractor is accountable for this mishap and that they might have failed to conduct the age verification process thoroughly. 

The NCPCR announced that there were 58 children working, including 20 young girls who were employed at the plant. Due to working and being in contact with chemicals, the skin of many children’s hands was burned off. 

A case has been filed against the company under the juvenile justice and bonded labour laws.

The Chief Minister of Madhya Pradesh 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.”

In its regulatory filing, the company said that these concerns are not related to the company but to a private associate that deals in country liquor. 

The company added, “The company has extended full cooperation to the authorities regarding the issue, and [has] terminated the services of the vendor.”

At 12:58 pm, the shares of Som Distilleries were trading 6.35% lower at Rs 116.71 on NSE.