Resource Book on Horticulture Nursery Management

profitability, control costs, reduce the risk of business failure, boost employee
productivity and job satisfaction, enhance physical efficiency, and improve management
professionalism. It can also support the evaluation of costs and returns for individual
products to determine a more profitable product mixture. Financial analysis can assist in
identifying some common problems in wholesale plant nurseries such as low output, slow
crop growth or poor pricing, excessive costs, waste or overuse, poor cash flow,
overcapitalization or undercapitalization, and imbalanced debt structure.
1. Components of Expenditure in Nursery
The establishment of plant nursery requires an investment to be made that comprises
of two major components namely Fixed Capital and Working Capital components.
� Fixed Capital Components
The fixed capital comprises those components where one time capital investments
are required to be made. This comprises:
Sr
No
Particulars Quantity
Rate in
Rs/unit
Year I Year II Year III
01 Fencing 400 sq.m. 40 16000 0 0
02 Workshed 20 sq.m. 500 10000 0 0
03 Mother
Block
Plant 6000 sq.m. 5 30000 5000 4000
04 Irrigation with 10000 13.5 135000 4000 4000
pipeline
sq.m.
05 Office cum Store 27 sq.m. 500 13500 0 0
06 Shadenet House 400 sq.m. 275 110000 0 0
07 Polyhouse 200 sq.m. 500 100000 0 0
08 Mist Chamber 15 sq.m. 250 3750 0 0
09 Polytunnel 150 sq.m. 250 37500 0 0
10 Land preparation, 2000 sq.m. 10 20000 0 0
nursery beds,
internal roads,
11
pathways, potting
yard
Water Storage 1 unit - 25000
Total 500750 9000 8000
The above components are taken into consideration for establishment of plant
nursery on one hectare area. These are required to be made once like land structures as
mentioned above. This component is most capital intensive and hence requires careful
planning and identification of plants which are required to be produced and made
available for sale.
<strong>Resource</strong> <strong>Book</strong> on Horticulture Nursery Management : 245