Indian authorities shut down Som Distilleries plant over child labor allegations

INDIA – Indian authorities have closed a Som Distilleries and Breweries spirit production site in Madhya Pradesh’s Raisen district and suspended its manufacturing licenses following the discovery of child workers at the plant. 

The shutdown came after Indian police launched an investigation into the facility, prompted by a report from the National Commission for Protection of Child Rights (NCPCR).  

The children’s rights agency found children and teenagers working in a liquor factory supplying the publicly listed group. 

Som Distilleries and Breweries, which produces brands like Milestone Blue whisky and White Fox vodka, has attempted to distance itself from the allegations.  

The company stated, “These concerns are not related to Som Distilleries and Breweries Limited but relate to our associate private limited company which deals in country liquor primarily and not the listed company as reported.” 

The company explained that contractors supplied the labor to the associated company, suggesting that the contractors might be to blame for not conducting proper age verification of the workers.  

The associated company has reportedly cooperated fully with authorities and terminated the services of the involved vendor. 

The police investigation revealed that some children had chemical burns on their hands, with NCPCR chairperson Priyank Kanoongo sharing images of the injuries on social media, highlighting the severity of the situation. 

Som Distilleries and Breweries operates production facilities in Madhya Pradesh and Odisha. For the fiscal year ending March 31, 2024, the company reported an income of Rs.12.8bn ($153.5m), up from Rs8.08bn the previous year, with a 50 percent increase in EBITDA to Rs1.5bn. 

Additionally, last year, the company was contracted by Carlsberg Group to produce Carlsberg and Tuborg beers at its Odisha brewery.