On Wednesday, Indian authorities announced the seizure of a Som Group distillery and the temporary suspension of its manufacturing licenses following the discovery of 59 children working illegally at the site by the National Commission for Protection of Child Rights (NCPCR). The NCPCR, which previously identified 39 boys and 20 girls at the factory, also released images of children's hands showing burns from chemical exposure. Senior police official Vikas Kumar Shahwal informed Reuters that police were dispatched to oversee the sealing process. Additionally, the state government has temporarily halted the plant's manufacturing licenses and directed the labor department to investigate. Som Distilleries and Breweries Ltd, which did not respond to requests for comment, had earlier stated to the stock exchange that the issue involved an associate private limited company using contractor-supplied labor, potentially without proper age verification. Som noted that these services have been terminated and they are cooperating with authorities. The company's shares have dropped by 7% this week. NCPCR Chief Priyank Kanoongo revealed that some children were transported to the factory in school buses, disguising their true destination. Som, a smaller player in India's booming alcohol industry, markets itself as an internationally acclaimed brand available in over 20 markets, including the United States, New Zealand, and the United Kingdom. Child labor remains a significant issue in India, with a 2021 Reuters report highlighting underage laborers found in two Carlsberg warehouses in Jharkhand. Carlsberg responded by terminating the third-party provider involved in 2018.
Text: Lara Palmer
19.06.2024
Som Group's Plant Suspended After Discovery of 59 Children Working Illegally, Shares Drop 7%