The Kerala plant that never stopped: Marico’s bizarre HR trick that actually worked

In 1990s Kerala, opening a factory was almost suicidal. Union strikes routinely brought plants to a standstill, and labor unrest made the state industrially toxic. Yet one factory, Marico’s Parachute oil unit in Kanjikode, ran for 30 uninterrupted years. 

Financial advisor Abhijit Chokshi revealed the surprising reason in a viral post on X: a psychological hack lifted straight from school sports day.

Chokshi’s post details how Marico, facing skyrocketing costs transporting copra 1,400 kilometers from Kerala to Mumbai, made a bold move—setting up a crushing plant at the source. The math made sense. The timing didn’t. Kerala, at the time, was India’s labor unrest capital, logging over 180 man-days lost per 1,000 workers annually. Most companies steered clear. Marico walked straight in.

What kept the factory running, according to Chokshi, wasn’t tighter controls or stronger security. It was a clever HR intervention that started after hours.

“Most unrest brewed after work,” Chokshi wrote. “Idle time, alcohol, and gossip created fertile ground for union leaders to manipulate.”

Marico’s HR team took a counterintuitive route: they turned the factory into a schoolyard. Workers were split into four houses—Red, Blue, Yellow, Green. After hours, they battled it out in cricket matches, debates, quizzes, and cultural events. 

Winners got recognition. Everyone got involved.

“Instead of hanging out at tea stalls, complaining about management,” Chokshi wrote, “workers were rehearsing songs, training for cricket, cheering their team on.”

The mood flipped in six months. Workers bonded across roles. Grievances shrank. Union influence waned. And while other plants in the state saw weekly disruptions, Marico’s Kanjikode unit became an HR case study in stability.

“HR consultants spend on retreats,” Chokshi concluded. “Marico just ran a few friendly games—and won loyalty for life.”

Three decades later, the factory still hasn’t seen a single strike.