CASE STUDY
AUTO COMPONENTS | DHARWAD
Debt Restructuring & Treasury Discipline
A fast-growing auto components manufacturer in Dharwad was running on expensive loans and constant cash flow stress. Lekachaara helped them restructure debt and bring treasury discipline so cash stopped feeling like a daily emergency.
The Challenge & Our Fix
The Struggle
The Lekachaara Fix
On paper, the business was doing well—orders from OEMs and distributors were steady. But the balance sheet told a different story.
We stepped in to bring structure to both debt and daily cash management.
- Multiple high-interest loans taken at different times
- No clear view of total monthly debt obligations
- Cash flow constantly tight around EMI dates
- Ad-hoc use of working capital limits to plug gaps
- Mapped every loan, limit and EMI into a single treasury view
- Identified high-cost debt and opportunities to refinance or close
- Created a realistic payment calendar aligned to inflows
- Set up simple weekly cash flow tracking and approvals
The founder was always negotiating with banks, vendors and staff—never fully in control of cash. Growth felt risky instead of exciting.
The goal was clear: reduce interest burden, avoid last-minute cash scrambles, and give the founder a predictable view of money.
Results & Impact
Within a few months, the business moved from survival-mode cash juggling to calm, predictable cash flow.
Reduced overall interest cost by prioritising and closing high-cost loans
Clear visibility of upcoming EMIs and vendor payments
Fewer emergency calls to banks for temporary limits
Founder could plan investments and growth with confidence
“Earlier, every month felt like a race to somehow manage EMIs and payments. Now we know our cash position in advance and can talk to banks from a position of strength.”