VIGYAN ASHRAM

NURSERY UNIT BUSINESS PLAN

 Nursery Business Unit

Brief Description about Nursery Unit:

Nursery Unit developed by Vigyan Ashram, having following specification:

S.No. Particulars Specification

1. Working Technology Green House
1. Area for Nursery 30 X 30
2. Capacity 20,000 Plants
3. Type of products can be process Chilly, Bringle, Tomato, Flower, Corliflower
4. Time for Processing 21 Days.
5. Approximate Cost 25,000 Rs/-

Target Customer:

There would be three target customers

1) Farmers, who sell vegetable direct to market.
2) Individuals want to start Nursery Unit business.
3) House wives who took interest in gardening.
Funding Source of Customers:

Either Customers can self fund it. If required micro loans can be taken from micro financing agency
and banking institutes.

How to spread words about business:

To increase the sales of plant it is essential to promote information among customer. For this
following means can be used

1) Visiting cards can be print with product and contact information.

2) Information can be given to customer either on phone or by direct meeting with farmers.
3) Photos of plant growth and process can be share on social media.

Delivery Period:
Plants will be delivered to customer within 28 days period with at least 75 % payment in advance.

Costing:

Costing for Nursery unit can be calculated as follows:

Startup Costs:
Particulars Price per Unit Qty. Total Cost
Shed Making 16,000 Rs/- 1 16,000 Rs/-*
Water Tank 5,000 Rs/- 5000 Ltr. 5,000 Rs/-
Total 21,000 Rs/-
Operational Costs
Particulars Price per Unit Qty. Total Cost
Mirch Seed Cost 3500/ 100 gm. 25,000 3500 Rs/-
seeds
Cocopit cost 6 Rs/- per k.g. 200 K.g. 1200 Rs/-
Tray Cost 9 Rs/- per tray 360 3240 Rs/-
Water Cost 1 Rs/- Ltr. 5000 5000 Rs/-
Marketing Cost 1500 Rs/- 1500 Rs/-
Transportation Cost 1000 Rs/- 1000 Rs/-
Sub Total 15440 Rs/-
Labor Cost 10 % of the total Operational Cost 1544 Rs/-
Total operating Cost 16984 Rs/-
Average Selling Price 1.20 Rs/- per 22500 27,000 Rs/-
plant plants **
Total Profit 27000-16984 10,016 Rs/-
* Shed Making
S.No. Particulars Cost
1 Shed Net 9653 Rs/-
2 Wires 1600 Rs/-
3 Bamboo 3500 Rs/-
4 Sewing Thread 250 Rs/-
5 Transportation Cost 1000 Rs/-
Total 16003 Rs/-
**Total 22500 plants are prepared or 10% loss of plants during handling and operation.

Profit Margin Calculation for different Plants:

Estimate
d Cost of Gross Estimate No. Of
Sr. Purchase Sales Goods Gross Profit Time to Plants To be
No. Products cost (Rs./kg) Exclusion Revenue Sold Profit Margin Complete sold

Cost of Trays and Cocopit Worth

Rs/- 96250 & Labour cost
excluded worth 24062,
Fertilizers cost 5000,
1 Mirch Plant 35000/kg Transportation Cost 20,000 225,000 180,312 44,688 20% 21 Days 250000
Cost of Trays and Cocopit Worth
Rs/- 96250 & Labour cost
excluded worth 24062,
Fertilizers cost 5000,
2 Bringle Plan 22000/kg Transportation Cost 20,000 270,000 180,312 89,688 33% 21 Days 250000

Cost of Trays and Cocopit Worth

Rs/- 96250 & Labour cost
excluded worth 24062,
Fertilizers cost 5000,
3 Tomato Plant 90000/kg Transportation Cost 20,000 270,000 180,312 89,688 33% 21 Days 300000

Cost of Trays and Cocopit Worth

Rs/- 96250 & Labour cost
excluded worth 24062,
Fertilizers cost 5000,
4 Flowers 32000/kg Transportation Cost 20,000 243,000 180,312 62,688 26% 21 Days 270000

Cost of Trays and Cocopit Worth

Rs/- 96250 & Labour cost
excluded worth 24062,
Fertilizers cost 5000,
5 Corliflower 36000/kg Transportation Cost 20,000 240,000 180,312 59,688 25% 21 Days 300000

Rates can be vary as per Qty. and Type of products used with market rate.
Break-Even Point Analysis:
It is a point where, no loss and no profit exist. In this situation only total invested amount is taken out
from business, without earning any profit or losing.
For Nursery unit business breakeven point analysis can be carried out as follows:
BreakEven Point = (Total Startup cost + 10% Loss consider) / Margin per Unit
So here total cost is 21,000 Rs/-
10% Loss consideration: 2100 Rs/-
Margin per unit = 10,016 / 22,500 = 0.445 Rs/-
So Break Even Point ( In Units) = (21,000 + 2,000) / 0.445 = 51910.11 Units or Plants

Assumptions:
Vigyan Ashram recognizes that the development and working of Nursery Unit consists some
assumptions about operations, costs, customer behaviors, working condition and Weather.

1) There is regular demand of product.

2) There are uniform sun rays throughout the year.
3) There is no loss of product in operation.
4) Initially no maintainace cost.
5) Cost calculation is on monthly basis.
6) Land cost is not consider.

Based on this, we have produced a SWOT analysis for this business.

Strengths: 1) Easy to access and use, no extra skills required to operate.

2) Zero Maintainace cost.
3) No need of electricity.
4) Low cost.
5) Variety of vegetables can be cropped.

Weaknesses: 1) Suitable for small scale business unit.

2)Extra care is needed for plants.

Opportunity: 1) Can provide extra source for income.

2)Multi plant farming can be done.

Threats: 1) Competitor can reduce the cost for same.

2) A parallel entry by a new competitor.
3) Sluggish economic conditions.
Competitive Analysis:
The nursery business is highly competitive, and it
is important to maintain a high level of customer
service, offer quality products, and give the
consumer a wide variety of choices when
shopping for plants and trees. Our approach will
be to offer a diverse selection of plants, trees, and
garden supplies. Exceptional customer service
will be important in meeting the needs of our
target markets. Healthy plants will be a top
priority, and we will display the plants
artistically. Plants are a commodity that will
always have a market as people consider them to
be very important to have around their residences
and we will have to provide top quality service to
be succeeded.

Chart showing percentage of vegetables growth in total production

Executive Summary:

Vigyan Ashram is located in one of the rural areas of Maharashtra, Pabal. Where agriculture is main
source of income. In present time agriculture is also adopting various technology based approach to
increase production. Even this sector is emerging as for some another source of income too. Vigyan
Ashram is a social venture dedicated for social impact among which decreasing food spoilage and
increasing farmer income by establishing small, local Hi-Tech Nursery centers in villages throughout
rural India is one of them. By providing Hi-Tech Nursery technique that are simple, robust, and do
not require any chemicals, this aim can be achieved.

Conclusion:
The overall health of the green industry is extremely strong. With gardening popularity growing and
the strength of the economy, including the growth of housing starts and commercial development, the
industry as a whole is doing great with a continued forecast of growth for the future time which
required to produce the trees, This will increase the opportunities in this field.
 Supported by: (N.S.T.E.D.B.)
National Science and Technology
Entrepreneurship Development
Board