Case Study 2 - India Based Manufacturing Company

Business Situation

An India based automotive manufacturing company was in the process of a large-scale expansion. Due to space constraints, the Machine shop, CNC machines and the Gear Box Assembly Line were shifted to a hired place (Unit 2), away from the main plant. The workers for this manufacturing activity are also transferred along with managerial staff.


The company was looking for financial services help – they needed a firm to independently manage the material accounting for Unit 2, so the company could focus on their core manufacturing activities.

Our Services and Solution

The company gave a detailed situation brief to Team Levare’s trained and experienced accounting professionals. The Team was also given a tour of Unit 2 so they could understand the entire process. The Team identified all areas which could be outsourced.

Based on the study the following processes were outsourced to Levare:

  • The entire material accounting activity at the new site
  • Receipt of castings and components required for machining and assembly of Gear Boxes
  • Physical verification of the material received and reporting of any discrepancies to the main plant
  • Issue of material to production based on the daily production plan
  • Dispatch of Gear boxes manufactured at Unit 2 to the main plant based on the daily schedules
  • Maintenance of records for the purpose of Excise authorities, including filing of monthly returns
  • Continuously updating management regarding all transactions at Unit 2

Results and Benefits

  • The company can concentrate on manufacturing – its core activity
  • The company can eliminate its separate store and excise department at Unit 2
  • The company receives a continuous information update about material consumption, including production wastage at Unit 2
  • All material discrepancies are promptly identified, communicated, and investigated
  • The company achieved significant savings in Unit 2 staff costs, which were higher than Levare’s professional fees


“Levare Consultants Pvt. Ltd. has been associated with our company for a long time. Their contribution has been of immense value, especially in the assignments of the Material accounting system, Material accounting (including excise records) and our Inventory Audits.”
– Director Materials, Automobile MNC