1. Reviving a sick nursery
INTRODUCTION
A sick nursery is one, which fails to generate internal surpluses on a continuing basis
and depends for its survival on the frequent infusion of external funds
The liberalisation of the economy resulting into increased competition has added
considerably to the problem of sickness of the business concerns
If revival measures are not adopted early , the nursery may have at the end of any
financial year accumulated losses equal to or exceeding its entire net worth
INDICATORS OF SICKNESS
Continuous reduction in turnover
Piling up of inventory
Continuous reduction of net profit to sales ratio
Short term borrowing at high interest rate
Continuous cash losses leading to erosion of tangible net worth
Delay in finalization of accounts
CAUSES OF SICKNESS
Prevention is better than cure is the proverb that reflects the need for knowing the
causes of sickness so that one can plan to avoid the sickness
Just as human beings, a nursery can either run into trouble even during the
implementation stage itself or develop sickness during its lifetime
Internal causes are those that are internal to the nursery over which the
management of the nursery has full control
External causes are those that are external to the nursery over which the
management of the nursery has little control
THE STAGES OF SICKNESS
Defects in planning and project formulation
Lacunae in project implementation
Production related problems
2. Inefficient marketing
Financial constraints
Issues related to general and personnel administration
DEFECTS IN PLANNING AND PROJECT FORMULATION
Most of sickness is attributed to ill-conceived projects and inadequate planning
A project that may, prima-facia present a rosy picture may have many hidden pitfalls
Irrational , over-optimistic decision may result in choosing projects that may have
inherent weakness
The existence of a few players in the chosen field ,who are doing well, is not always a
sound proof that the project will be a success
A through and detailed investigation of the project during the formulation stage is
essential
LACUNAE IN PROJECT IMPLEMENTATION
Delayed implementation gives a project a difficult start
Long time taken for project implementation results in time overrun which is
invariably followed by cost overrun
The problem of cost overrun will get more compounded if the finance necessary to
meet the increased cost cannot be arranged in time
PROBLEMS
The promoter may not be in a position to bring in funds to the required extent in
time
The cost of different components of project-cost may increase due to price
escalation
The cost provided for some of the elements of project-cost might have been
underestimated
There may be delay in getting power connection, water connection , approval from
local bodies , approval from pollution control authorities etc which may postpone
project implementation of production
PRODUCTION RELATED PROBLEMS
Increase in cost of production
3. Decrease in quality of production due to defects in performance of persons
employed
Quality of product not meeting the standards or consumers exception
Producing more quantity than can be sold , leading to accumulation of stock
Lack of proper planning of product mix and lack of co-ordination between
production and marketing departments may lead piling up of inventory, which will
only add to the cost of the product
INEFFICIENT MARKETING
Marketing occupies an important position in the organization of any business unit
The prime objective of marketing is the satisfaction of consumers needs
It involves planning and producing to meet customer needs and also servicing the
customers after selling the product
In the present day situation where buyer’s market has come to stay almost for all
products ,any organization that does not give due importance to marketing is bound
to find its sale turnover taking a downward trend
PROBLEMS
Introduction of better substitute products by competitors
Absence of product innovation and new product development
Failure to maximize the potential of existing products
Poor and inadequate distribution system
Failure to meet the agreed delivery schedules
Absence of correct costing and correct pricing systemfor the products
Financial constraints
A nursery is sick when it fails to yield reasonable profit to sustain its existence
There may be several reasons for this sickness but financial constraints constitute a
major stumbling block for success of the nursery
Finance is considered the lifeline of any business
PROBLEMS
4. The nursery owner might have chosen a bigger plan which is beyond their financial
capacity , they often resort to borrowing , invariably at higher interest with the hope
of clearing borrowing once the project takes off
Funding a project with a higher debt component than that it can safety bear is
another reason for sickness
Improper inventory management policy will lead to holding huge stock of finished
products
ISSUES RELATED TO ADMINISTRATION
Lack of motivation and co-ordination among staff / workers
Lack of manpower planning
Poor industrial relation to labour unrest
Difference of opinion among the shareholders/partners
Lack of assigning equal importance to all areas of business
Projects that solely depend upon the skills of an individual
ANALYSING REVIVAL PROSPECTS
Once bitten, twice sky before attempting to rehabilitate a sick nursery/unit
The detailed and thorough viability study is to be undertaken to ensure that the
revival programme will really bear fruits
The viability analysis shall enquire into the technical , commercial , management ,
financial aspects
TECHINICAL APPRASIAL
Study the production capacity of different production sections and checkup if the
production capacities of different sections are perfectly balanced
Explore the possibilities of additional/special feature to the products that will add
competitive edge to the product
If the locational disadvantage outweigh all other factor , the scope for shifting the
location to an advantageous place may be examined and the cost-benefit analysis
studied
5. Study the modification required , if any in the nursery layout so that the material or
product handling time can be reduced which may improve the efficiency of
operation and improve the output
COMMERCIAL APPRAISAL
Commercial failure of a project will be mainly due to problems relating to the
product itself viz., imperfections in product which may lead to consumer resistance
Such situation indicate that the products offered by competitors have better
features that attract the consumers
Minor modification in designing and packing the product with upward revision in
price may be accepted by market which brings better income to nursery
Limiting to a specific groups of plants may restrict the business to a particular group
of peoples , so product diversification may prove to be a feasible solution
MANAGEMENT APPRAISAL
A good nursery in the hands of an ineffective management becomes sick in due
course of time
Similarly , a good management is capable of converting a not-so-good nursery into
highly successful profit-making nursery
The sickness is due to reasons beyond the control of present management or due to
ineffective management
FINANCIAL APPRAISAL
Reduction in interest rate of existing loans
Conversion of short term loans in to long terms loans
Conversion of part of long term loans into equity
Offering a revised schedule of repayment for the principal components of term loan
Sanction of additional loan to meet the additional capital expenditure
Funding of the overdue interest and making it repayable in easy instalments
REVIVAL PROGRAMME
A nursery that has gone sick would already loss its huge resources
In order to utilize the assets and infrastructure already created for the nursery ,it
needs to be revived
6. There is no doubt that the nursery would have had some weak areas which could
have been the cause for the sickness
Inspite of this, revival the sick nursery is worth considering since the cost of setting
up a new unit might be substantially higher as compared to cost of
revival/rehabilitating a viable sick nursery
ORGANISATION IS THE KEY
You can increase profitability a great deal by simple organising and planning what to
do in nursery
Planning should be an ongoing process
There are basic things which should be asked over and over as constantly review
what nursery is producing or selling, how are producing and how market the
products
REDUCE WASTED TIME
Doing various tasks manually is not only costlier but also time consuming
Mechanization of tasks may save considerable time and labour
REDUCE WASTED FACILITIES AND EQUIPMENT
Owner should only buy extra equipment because it will lead to extra profit
Sometimes more cost effective to hire some types of equipment , particularly
equipment that , while necessary to the nursery operation, is only used infrequently
REDUCE WASTED MATERIALS
Be self critical, it is easy for expenses to increase because potting mix gets spilt on
floor, buy too many labels and pots which break over time or damaged if stored
incorrectly
It is a mistake to just keep buying materials when it need , without having earlier
calculated what requirements should have been
MAKE THE MOST EFFICIENT USE OF LABOUR
It is important to have suitable trained staff and the right mix of staff
There is little point in having , for example, staff busily propagating plants , if labour
don’t have the support staff available to care for those plants once propagated, or to
do the marketing and transporting in due time
7. DIVERFICATION
Diversification may be an effective way of reducing income variability
It means combining of different production oriented tasks
For instance, diversification can include more crops in the same production process
or having different types of allied enterprises like supply of gardening inputs , rooting
media etc
It typically reduce large year-to-year variations in income
Effective diversification occurs when low income from one enterprise is
simultaneously offset by satisfactory or high incomes from other enterprises
In worst case, small nursery can minimize production or income generation risk
through diversifying source of income such as opting for part-time off-farm
employment of its labour force and regularly paid staff
CROP INSURANCE
Crop insurance providing financial security against losses suffered due to crop failure
because of fire , storm, cyclone etc
Crop insurance is an example of a risk management tool that not only protects
against losses but also offers the opportunity for more consistent gains
Insurance program protects against yield shortfall by providing coverage against
most natural disasters
Crop grown under glass, plastic , or other generally fall into high value input-output
category, as such, risk management planning is very important
Sometimes insurance offer policies, which cover the minimum standards for
construction and material used in the construction
The changing economic environment has triggered a renewed interest in crop –
insurance and expected that nursery crops would soon be covered by good
insurance schemes thereby improving the chances of revival from sickness
MONITORING THE REVIVAL PROGRAMME
A sick nursery that is under a revival programme is similar to a sick person who is in
curing stage and needs continuous monitoring
A simple and practical monitoring mechanism needs to be followed for its speed
revival
8. A nursery manager will keep an open mind , will continually review the way things
are done in the nursery and look for better , more up-to-date and more profitable
ways of doing things besides decorating the establishment for enhanced attraction
of the peoples
WAYS TO REVIVE A DYING PLANT
LOCATION:
Make sure its in the right spot and receiving the sun or shade it requires
Every plant wants to grow and thrive but if its not getting enough sun or too much
sun its going to struggle
Moving plants is easier if they are in a pot but if in ground water well begore digging
up and choose a mild day before relocating
SOIL IMPROVEMENT
Improve the soil around plants
Soil is the diet for plants and needs to be healthy for plants to succeed
Improve the soil in new beds by digging through mushroom compost and well rotted
manure
THE RIGHT NUTRIENTS
Water sick plant well and using a seaweed tonic diluted in water will help to promote
healthy soil and root growth
Avoid over fertilizing unless see signs of an minerak deficiency.
CUTTING BACK
Cut back leggy shrubs and remove any dead or dying leaves and branches.
The majority of plants can be cut back by a third safely and this will help to promote
new growth both above and below the soil
Removing yellowing and spent leaves and flowers will give the plant space to grow
new ones.
Control the nasties
Once you have given your plant some love and attention you need to keep the
maintenance to ensure it gets back to full health as soon as possible.
9. Ensure plant receives the water it needs and fertilize with a slow release fertilizer
and liquid one simultaneously ,around the time to see the new growth and
improvement from plants.
SICK PLANT DIAGNOSIS
The texas plant disease diagnostic laboratory(TPDDL)
It gives service and effort of the department of plant pathology and microbiology at
Texas
It provide the most accurate and rapid plant disease diagnosis together with
recommendation for effective plant disease management
CONCLUSION
Developing customer-oriented new products
Staff training for skill upgradation and knowledge enhancement
Calculating and analysing the profit and resetting price accordingly
Looking for better prices of raw materials
Refining propagation methods for each plant variety
Upgrade equipments for improving production efficiency
Attending seminars and keeping in touch with current research , trends and
development
REFERENCE
PLANT NURSERY MANAGEMENT :P.K. RAY
BASIC HORTICULTURE :JITENDRA SINGH
NURSERY RAISING :S.N DAS