FOOD PROCESSING | TUMKUR
Working Capital Cycle Optimization
A food processing unit in Tumkur was facing seasonal cash gaps, slow collections and high inventory. Lekachaara helped them map their working capital cycle and bring discipline to collections and stock so cash stopped feeling unpredictable.
The Challenge & Our Fix
The Struggle
The Lekachaara Fix
The business had strong demand during peak seasons, but cash flow never felt comfortable.
We helped the business see its working capital as a full cycle—not isolated problems.
- Seasonal spikes in production created heavy inventory build-up
- Collections from distributors and retailers were slow
- Payments to suppliers and staff still had to go out on time
- Frequent short-term borrowing to bridge cash gaps
- Mapped the full working capital cycle from purchase to collection
- Set clear credit control norms for customers
- Introduced inventory norms for raw material and finished goods
- Built a simple weekly cash flow and collection review
The founder felt like they were always catching up—never ahead of the cash cycle.
The focus shifted from reacting to cash gaps to planning for them in advance.
Results & Impact
Over the next few seasons, cash flow became far more predictable and less stressful.
- Smoother cash cycle across peak and off-peak seasons
- Reduced reliance on emergency short-term loans
- Faster collections from key customers
- Better visibility into how much inventory to hold and when
“Earlier, every season ended with cash stress. Now we know our cycle, plan for it, and sleep better at night.”