"For the time being, we have postponed the decision to set up two bought leaf factories, one each in West Bengal and Assam. There is a lot of re-planning being done at the moment", the source told PTI.
The PSU had been buying bought leaf from others as there was no surplus production capacity due to intense uprooting and rejuvenation, the source said.
The first factory was supposed to come up at Sibsagar district in Assam at Sibsagar followed by the other in north Bengal with a production capacity of one million kilograms per annum in each of them.
Earlier, the decision to set up bought leaf factories was based as it was one method to straightaway boost two million kilograms production per year which would add both to the topline and the bottomline.
"Since company is owned by the government, there are many restriction on operations and this appeared to be the convenient way to raise production volumes", the source said.
The present production capacity was around 12 million kilograms per annum.
The tea division of the company contributed to 55 per cent of the total turnover, the source said, adding additional production of one million kilograms would add Rs 15 crore to Rs 20 crore to the topline.
Andrew Yule was having two other operating divisions, namely engineering and electrical.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)