IIMB ----

G SHAINESH

BÜHLER INDIA – ASSESSING GROWTH OPPORTUNITIES

“A young technologist prompted us to the potential in the entry level market. This market has grown
1
8 fold from Rs.750 million to Rs.6000 million in the last 3-4 years.” - Dipak Mane, President
South Asia, Bühler.

Dipak Mane, President – South Asia, Bühler was looking forward to his meeting with the Management Committee
on January 15, 2013 at Uzwil, Switzerland to assess potential opportunities for growth in India. One of the key
decisions was related to the rapidly growing entry level market for grain processing equipment and plants. Bühler is
internationally known for innovative technologies, quality and premium pricing targeted at the top and cost-effective,
standard solutions for the mid-level market. The opportunity in the entry level segment of India’s huge grain
processing market would involve a few trade-offs.

He listed out some major issues: Should Bühler enter the entry level segment? If yes, what adaptations will be
needed to target customers in the entry level segment? What is the potential cannibalization with the mid-level
segment where Bühler has a sizeable presence? What should be the differentiation strategy in the entry level
segment? What will be the go-to-market strategy for the entry level?

FOOD PROCESSING INDUSTRY IN INDIA

2
The food processing industry includes

a) Manufactured processes: If any raw product of agriculture, animal, husbandry or fishing is transformed through
a process in such a way that the original physical properties undergo a change such that the transformed product
is edible and has a commercial value.
b) Other value added processes: If there is a significant value addition (increase in shelf life, shelled and ready for
consumption) such produce also comes under food processing even if does not undergo any manufacturing
process.
3
The food processing industry’s output was Rs.4650 bn in financial year 2010. The sector is growing at a CAGR of
16.9% per annum.

The global investment in food processing machinery and consumables add up to Rs.1300 billion every year.

1
Conversion Rate: 1 USD = INR 50
2
http://mofpi.nic.in
3
http:// ibef.org

Doctoral candidate Sourav Bikash Borah prepared this case under the supervision of Professor G Shainesh, with the assistance of
academic intern B.V.N.G Chandrasekhar as the basis for class discussion. This case is not intended to serve as an endorsement,
source of primary data, or to show effective or inefficient handling of decision or business processes. Data has been disguised for
confidentiality.

Copyright © 2014 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or transmitted in
any form or by any means - electronic, mechanical, photocopying, recording, or otherwise (including internet) - without the
permission of Indian Institute of Management Bangalore.
<Bühler India - Assessing Growth Opportunities > <Case number> Page 2 of 15

The government of India offers several incentives, including tax concessions, to the food processing sector to attract
investments. The equipment manufacturing sector is largely domestic which includes subsidiaries of leading foreign
players. Imports currently account for less than 5% of the industry requirements. US, Germany, Sweden,
Switzerland, Italy and France are the major sources for imports. Leading equipment suppliers include Alfa Laval,
Tetra Pak, Schaaf, Cryovac and Bühler.

Rice milling is a part of the overall agro processing industry with an estimated annual turnover of Rs.1,000 – 2,000
billion in India. While India is the world’s second largest producer of paddy with production of 120 million tons in
2010, only about 5 million tons is stored in silos for processing. In comparison, Thailand produces around 20 million
tons of paddy out of which around 8 million tons are stored in silos for further processing. Rice milling is the process
to remove husk from paddy and then bran from the brown rice to produce polished rice (Exhibit 1). Rice mills, with
capacity for milling of 6000 – 100,000 tons of paddy per annum usually operate for 2000 – 6000 hours every year.

BÜHLER: COMPANY HISTORY

Bühler ranks among the top two food processing machinery manufacturing firms in the world. Established
in 1860 by Adolph Bühler, the Swiss company is a grains processing technology major and agro-solutions provider
focusing on food processing equipment, chemical process engineering and die-casting (Exhibit 2a). The Bühler
group, with a turnover of Rs.140 billion in 2012, operates in 140 countries and employs ~ 10,000 people.

Bühler is structured into three different product divisions: Grain Processing Division, Food Processing Division and
Advanced Materials Division (Exhibit 2b). Grain Processing Division contributes 60% of total sales (Exhibit 2c).

The company is known around the world for its machines for the chocolate, flour milling, pasta industry. 75% of
chocolates worldwide are produced on Bühler machines and in India, Bühler’s share of the chocolate processing
equipment is more than 90%. Its Indian operation was started in 1992, with an initial investment of Rs. 67 million.
Over the last two decades, the company has emerged as a leading systems and equipment provider for the rice and
wheat processing industry.

Bühler in India
Headquartered in Bangalore, Bühler India earned revenues of Rs.11,000 million in 2012. Rice processing including
rice milling and color sorting plants contributed to more than half of the company's sales in India. Flour and feed
milling, die-casting, pasta, and chocolate plants account for the balance.

Bühler was represented by L&T as its agent till 1992 when Bühler set up its own operations in India. One of the first
multinationals to enter the market after the initiation of economic liberalization in India, Bühler viewed ‘food
processing’ as a major opportunity.

The first couple of years witnessed a mix of business from food & non-food segments. Though, thrust was on flour
milling, the initial business developed from oil milling and thermal processes (plastics). Bühler was awarded some
major contracts by RIL and IPCL for their petrochemical projects and these contributed heavily to their turnover.
However, the overall size of the market being small, the opportunities were limited. In grain processing, the top
market accounted only for Rs. 300 – 370 million. Although Bühler had 35% market share, sustainability was still
questionable. The business opportunities were almost saturated by 1996. Madhya Pradesh was a major investment
destination and almost all vegetable oil majors invested heavily during these years leading to a massive over capacity
for years. Bühler India also sold two complete rice mills after conducting trials on Indian paddy in its Germany
laboratory.

In 1995, Bühler acquired Sortex of UK. This acquisition brought in additional business volumes from coffee and
rice. It also led to sale of other related machines produced by Bühler. Flour milling, in the meantime, was
<Bühler India - Assessing Growth Opportunities > <Case number> Page 3 of 15

maintaining a very marginal presence by selling cleaning sections to flour mills across the country. However little
else was coming in from this industry.

Rice processing (Exhibit 3) equipment investments has witnessed a five-fold growth between the mid-1990s and
2012 from Rs.3700 million to Rs.18500 million. Bühler grew to Rs.500 million in the first 10 years of its operations
in India during 1993-2002. By 2012, Bühler emerged as one of the leading players in the top and middle segments
with a market share of 30%.

OPPORTUNITIES AND CHALLENGES IN INDIA

In the initial years, the numerous state and central rules, regulations and taxes in India proved to be the biggest
challenge for Bühler. These made it difficult to penetrate the markets across states. The cost of procuring readymade
machinery from Bühler ‘s headquarters in Uzwil, Switzerland added to the cost. Entry in mid-market was also
constrained by capacity. The mid-market segment had machines with capacity of 2.5 tons that were lower than
Bühler’s smallest machine. Cost was another concern at that time. A 5-tons per hour Bühler mill at that time would
cost about Rs. 20 million and the machines produced by domestic mills was only about Rs.2 million. In the mid-level
the 2.5 tons per hour machines were sold at Rs. 0.5 million in the domestic market. Bühler was positioned as a high
quality global brand. However, cost was an important factor in the Indian market. Bühler’s price was 15 to 30
percent more than the cost of traditional, locally available machines. As a result convincing the price sensitive
Indian buyer to pay extra for the new one was a big challenge for Bühler’s sales team. Once Bühler decided to
manufacture machines locally in India after transferring technology and designs from Switzerland, they faced
challenges in sourcing the accessories and components in the Indian market. With available resources, Bühler could
give consumer only 50 to 85 per cent of accuracy from its locally manufactured machines. Branding Bühler was a
big challenge for making an entry into a fragmented and largely unaware market. It was like ‘mission impossible’ for
the marketing team.

Strategy
Initially, Bühler concentrated only on the large mills in the top market. Later it started catering to medium and small
millers who are in larger number than high volume millers to compete in a larger product - market space and also
gain from a larger turnover. Bühler decided to go for an intensive market expansion by targeting the smaller mills
segment by providing them a one-stop-shop solution. The sales team found that as whitening needs to be done in
three to five stages, the mills needed 3 to 5 machines. Multiple stages ensure that rice grains do not break. Bühler
offered an interesting proposition of having one single machine (with multiple passes through it) instead of three
machines. Free trials, demonstrations were conducted at rice processing centers and slowly the mill owners started to
see the benefits of Bühler’s whitening machines. The base level quality was also much higher. Bühler started selling
more through positive word of mouth and referrals from satisfied millers. Bühler then offered a second machine to its
existing customers. Eventually a few mills started buying the entire section from Bühler as the company started
providing additional value by adopting a complementary approach which includes educating mill owners about
handling the machines, maintenance and servicing, and handling machinery breakdowns. In parallel, the company
was also constantly trying to reduce prices and overheads and increase volumes so that it can give its customers the
best at a reasonable, competitive price.

New products
As a part of its strategy to penetrate in the market, Bühler’s research team undertook extensive projects to design
new, modified and redesigned products to give a complete range of machineries to the smaller mill owners. These
machines with 2-3 tons per hour capacity are now available as part of the product list. Intensive R&D has resulted in
the development of “Vertical whitener” which is used to remove the rice bran more efficiently. “Water Jet”, another
outcome of collaboration between teams in India and Germany, has potential for export to China and other Asian
countries.
<Bühler India - Assessing Growth Opportunities > <Case number> Page 4 of 15

MID-MARKET SEGMENT
Bühler is positioned as the global specialist and a technology partner in the supply of plant and service for
food and grain processing industry. Engineering centers, located in the key markets across the globe handle the
setting up of plants at customer sites. Engineers with drawings and designs for plant layouts travel to customer
locations and manage the complete engineering for setting up a complete Plug and Play Mills as turnkey solutions.
As the costs, time and quality have always been the crucial criteria for success in India, Bühler adapted its traditional
business model for better customer service in the mid-market segment. The company used its trained employees
working in their milling and other centers for setting up plants while local engineers and electricians complete the
job enabling Bühler to commission the equipment & plants faster and at a lower cost. This model helped Bühler to
gain market share in the mid-level market while maintaining the differentiation with competitors.

The company also adapted its promotions for the Indian market. In early 2006, it introduced its color sorter. To
promote this product, a specially designed small color sorter was taken around on a truck across the country to cover
5000 kms during a six month period with 15 stops at all major rice processing centers. Now they sell around 440
large color sorters per year and the business is worth Rs. 3000 million. Their new generation color sorters are
connected to the company’s performance center round the clock and the machine automatically fires off an SMS and
e-mail to the nearest engineer if it detects any potential problems. Bühler also guarantees the plant for minimum
6000 hours of up-time.

ENTRY LEVEL MARKET

The Entry Level Market grew substantially in the last 4 – 5 years mainly at the cost of the ‘non-industrial’ – ‘village
level’ market.

The entry level market, in rice milling alone is estimated to be Rs. 6000 million. It has the highest growth among
across segments but the sales ticket size is smaller.

The business environment is very dynamic and competitive. In the mid- market, several new players have entered
and competition is expected to grow at a higher pace.

Bühler competes with traditional players as well as foreign players from China, Japan, and Korea. There are large
local players in the market today, catering to the Entry Level and Mid-market Segments. They mostly copy / de-spec
/ down-scale machines from international Competition. . The Serious Local competitors cater to the need of small to
mid-sized rice mill owners who are large in number. So by catering to their needs in creating machineries for 20 – 80
tons-per-day (TPD) capacity they have succeeded in carving a niche for themselves in the market, creating a strong
entry barrier to big players like Bühler who have the capacity to manufacture machines with minimum of 125 TPD
capacity. By entering the entry / mid-market early, local competition successfully enjoyed the early bird market
share, profit and some created a decent brand image in the millers’ mind. The largest local player today enjoys a 30
percent of the market share, Bühler has 25 percent and the remaining 45 percent is shared among other players. at the
Entry level , there are 30-40 competitors.

It requires at least 2.5 to 3 times number of customer orders than the mid-market and 6 times more customers to
generate comparable sales. Price levels are also relatively low in this market. Single order value is in the range of
Rs.0.5-1.5 million while it can be Rs.3-5 million in the mid-market and Rs.10 - 12 million in the top level market.
There is a huge variation in the specifications and quality levels across segments (Exhibit 4). The encouraging aspect
of the entry level market customers is their keenness to scale up and be comparable to mid-market level in quality
and capacity. Many rice mill owners are seeking out automated equipment and advanced technology in the entry
level market too. The challenge is to offer products and solutions that meet the new market needs (Exhibit 5).
<Bühler India - Assessing Growth Opportunities > <Case number> Page 5 of 15

There is a behavioral issue that Bühler needs to fight as well. Milling is one of the least important concern for the
mill owner in the entire value chain. Paddy trading and rice selling are the most important activities in these markets.
Thus in the entry level market, Bühler needs to fight the battle for mind space. The lack of importance given to
milling makes it difficult to pursue mill owners to procure new machines by disposing the old machines.

MARKET SEGMENTS
Dipak emphasizes, “After 3 decades in business, I have come to believe that every business is
really simple. Only two things matter - segmentation and differentiation. Two simple questions -
Where to Play? How to Win? Segmentation helps the organization focus while differentiation
helps us compete. Operational excellence is the third important thing which can only be gained
through experience.”

As its markets are changing all the time, Bühler has developed dynamic segmentation models (Exhibit 6) to assess
trends and help implement its go-to market strategy.

The markets are segmented on several basis including

- Customer Requirement: What does the customer want? The needs of customers who export to Europe, Africa, USA
is completely different from branded companies like India Gate, Dawat etc., or local brands.
- Technology: segment preferences for sophisticated technologies like color sort, sensor technology, technologies for
ejectors etc.
- Competition: Each market has its own set of offerings from several players
- Price.

Exhibit 6a shows the evolution of the market segments based on size of the rice mills.

Dipak recalled, “We try to differentiate all these aspects separately for each segment,
but when we cannot, we try to see it graphically based on market inputs from sales and
service teams. We all had the same questions when we started to adjust on prices,
markets, competitors, technology and when we move into another geographical
location as different rice required different processes. Finally, we tried to work on the
three markets. Still a few grey areas are present but only when we could segment and
differentiate in the market properly, we decided to enter the market. This would help us
to reduce the risk of cannibalization.”

STRATEGIC OPTIONS
At present, Bühler does not compete in the entry level market and lacks sufficient knowledge about this segment
which is extremely local. The company has established its presence through a zonal structure (Exhibit 7). Its sales
offices in the metros and large cities and service centers at major rice processing centers help keep in close proximity
with customers.

While Bühler has been traditionally focusing on the end-to-end rice milling value chain, they also started offering
options for single machines too.

The Sales Manager had recommended for the color sorter as a vehicle to create a beach head and open the entry level
market. Color sorter for the entry level market can leverage slightly older technology to reduce the price while
offering comparable quality and performance. Players in mid-market expect lower prices but the latest technology.
The important point is that top market is also changing. The Sales Manager noted that customers in the top market
wanted rice mills that were ‘sensory controlled’ in addition to being functional and technologically sophisticated.
<Bühler India - Assessing Growth Opportunities > <Case number> Page 6 of 15

Dipak did not want to under estimate the risk of cannibalization. His sales team had observed a few customers in the
mid-market getting attracted to products meant for the entry level market. Due to automation, the current capacity is
not a constraint for millers in the mid-market. However, the entry level market is very fragmented and each customer
is small in size. Competing with small players may be easy and Bühler’s additional capacity could be utilized to
achieve the required volume very easily. If Bühler were to start supplying machines to the entry level, what is the
impact on existing customers at the top and mid-level? What product specification will improve differentiation from
competitors as well as for customers in different segments? If a product is offered for the entry as well as mid-level
market, will customers start comparing the offerings and bring this comparison to the negotiation table to bargain for
a better price? How will it impact Bühler’s brand? Will it impact the mid and top level market?

The go to market strategy of Bühler is based on high precision. In the beginning, engineers would fly in from
Switzerland for the initial installation. This strategy was feasible in the top market when the number of customers
were low and project prices high. However, with increase in number of customers this may not be a feasible strategy.
The mid-market approach already offered ‘multi-tasking’ engineers located in different areas nearer to the customer
(Exhibits 7 & 7a). The entry level market will need much more closeness to the customers, which might be very
expensive for Bühler to provide. Should the company’s go to market strategy change? How should the company
change its delivery model for the entry level market?

Finally, selling the idea internally will not be easy. Dipak remembered how difficult it was to convince colleagues
when Bühler entered the mid-market. However, in those days, the company was not so established in India. Stakes
were low. Now Bühler’s business in India is stable and it has been growing while making reasonable profits. For
Dipak, it was a tough call.

Dipak started evaluating about his options to grow the business in India -

“Who will support the idea? How will I build the business case for growth? What should be the initial investment?
Do we need to partner with local players? What should be the scale of operations? What will be the USP? Should it
be the same as mid-market entry? Finally, how do we leverage our multi-axis segmentation process to differentiate
the offerings leading to distinct positioning in each of the three markets (Top, Mid and Entry) and eliminate
cannibalization? ”

Dipak knew that the answers were not straight forward and would require tough decisions. They need to be made
fast.
 <Bühler India - Assessing Growth Opportunities > <Case number> Page 7 of 15

Exhibit 1: Paddy and Rice/Grain Processing Industry

Paddy Growing Paddy Trading Milling

Milling
Rice Sales Further Value Addition

Paddy and Rice/Grain processing industry is divided into several phases -

1. Agriculture: The agriculture phase includes seeds, farm implements industry (John Deere, Mahindra,
Tractors), chemicals (fertilizers, pesticides, nutrient supplements) and the trading chain. Bühler does not
operate in this phase.
2. Post Harvesting Technology:

Rough Rice Cleaning Drying Storage Milling Rice

Purchasing Distribution

Post Harvesting consists of the following steps

a) Cleaning: This is an important operation and highly recommended not only on a large and medium
commercial scale, but also on a small scale. It consists of the separation of undesirable material, such as
weed seeds, straw, chaff, panicle stems, empty grains, damaged grains, sand, rocks, stone, dust, plastic and
even metal and glass particles.
b) Drying: Paddy as a living biological material absorbs and gives off moisture depending on: paddy moisture
content, relative humidity of the air and temperature of the surrounding atmosphere.
c) Storage: Rice, like other cereal grains, is subject to deterioration because of changes in temperature and
relative humidity. Insects and diseases are more active with increase in temperature and relative humidity.
d) Parboiling: Parboiling refers to the hydrothermal treatment of rough rice prior to milling. Parboiling affects
the milling, storage, cooking, and ultimately consumer preference of rice.
e) Milling: Paddy or the rice grain consists of the hull or husk and the caryopsis or brown rice. Brown rice
consists of an outer layer called bran, the germen or embryo, and the edible portion. Rice milling helps
separate the husk and the bran to produce edible rice for human consumption.
f) Grading: Grading is the process of sorting of a given product according to the grades or classes. In grading
of paddy, mainly thickness or length of grain is considered.
3. Grain Business to Business (B2B): The B2B phase converts raw grains to products like (Paddy – Eatable
Rice, Wheat – Flour, Mixture of grains – Animal feeds, Raw Barley – Malt) and includes color sorting of
grains at
a) Rice Mills:
b) Treatments: Parboiling and Steaming.
4. Food Processing: Coversion to products like (Wheat flour – Pasta, Rice – Mudi/Moormura, Corn – Corn
Flakes, Wheat Flower – Cheese balls, Corn Flour – Nachos)

Rice Mills

a) Receiving, Storage, Grading and Drying activities takes place in a rice mill.
b) Thermal Treatment Process
c) Milling
d) Packing: Packing into different bag sizes e.g. 50kgs (Bulk), 5Kgs, 2kgs, and 1kg.
<Bühler India - Assessing Growth Opportunities > <Case number> Page 8 of 15

Basic rice milling processes:

1. Cleaning : Removing all impurities and unfilled grains from paddy

2. De-stoning : Separating small stones from paddy
3. Parboiling (Optional): Helps in improving the nutritional quality by gelatinization of starch inside the rice
grain. It improves the milling recovery percent during de-shelling and polishing / whitening operation
4. Husking : Removing husk from paddy
5. Husk Aspiration : Separating the husk from brown rice/ unhusked paddy
6. Paddy Separation : Separating the unhusked paddy from brown rice
7. Whitening or De-branding : Removing all or part of the bran layer and germ from brown rice
8. Polishing: Improving the appearance of milled rice by removing the remaining bran particles and by
polishing the exterior of the milled kernel
9. Fitness grading: remove thick and thin
10. Length Grading : Separating small and large broken from head rice
11. Color Sorting: Physical separation of other color rice (Black, brown, Green and red) from white rice.

Exhibit 2a: Buhler - Milestones

2012 Introduction of the Ultra Line of processors

2010: Introduction of high capacity optical sorter, setting a new standard in rice sorting.

2009: Set-up of integrated rice mill, covering paddy storage, drying & rice milling in Engro, Pakistan.

2008: WinCos II plant control system – Only Bühler provides technology and automation from a single source.

2006: Launch of revolutionary SORTEX Z+ series optical sorter.

2000: Set-up of (75 TPH) rice mill in California the largest in the USA.

1992: Multilevel rice mill layout concept, resulting in compact plant layout with easy access

1990: Introduction of first rubber rolls huller - PaddystarTM.

1988: World’s largest (120 TPH) rice mill, set-up at Dhuri, Punjab, India

1982: Launch of BlancostarTm - an introduction to the vertical whitening concept.

1972: Took over MIAG, Germany - leading to entry into the rice milling business.

1908: MIAG started production of rice milling equipment.

1860: Establishment of Bühler AG

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 9 of 15

Exhibit 2b: Bühler - Divisions and Business Units

Division
Division Division
Advanced
Grain Processing Unit Food Processing
Material
Grain Milling Chocolate, Cocoa, Die Casting
Coffee
Grinding and
Feed and Biomass Pasta and Extruded
Dispersion
Products
Sortex and Rice Nanotechnology
Aeroglide
Grain Logistics Nutrition Solution Leybold Optics

Source: Company

Exhibit 2c: Bühler Sales by Division

Sales in Percentage

22%
Grain Processing
18% 60% Food Processing
Advance material

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 10 of 15

Exhibit 3: Bühler’s Business in India – 1992 to 2012

Turnkey Solutions

Basic Mills

Plant Sections

Combo Machines

Single Machines

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 11 of 15

Exhibit 4: Segments and Offerings: Managing the Mid-Market Transition

Top Market Customized

Mid Market Standardized

Entry Level Single Machines ?

Village Level – Non Industrial Hand made implements

Source: Company

Exhibit 5: The Elevated Market Place: Offerings to Match the New Market Needs

Differentiated
Top Market Customization
Safety, Lights Out,
Traceability, Process Control

Mid Market
Market Higher Standardization
Top Customized
Stainless, Higher Controls, Yield Controllers

Mid Market Standardized

Entry Level “Value Added” Entry Level

Entry Level Single Machines

Village Level – Non Industrial Diminishing Village Level

Village Level – Non Industrial Hand made implements

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 12 of 15

Exhibit 6: Bühler’s Multi-axis Market Segmentation

Reject Ratio 10B: 1G

Simultaneous Sort

Price

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 13 of 15

Exhibit 6a: Rice Mills –Segments in 1992 and 2012

Top Market
Top Market Rs. 4500 mn (60% share)
Rs. 200-250 mn

Mid Market - Rs. 8000 mn

Buhler (30% share), Competitors -
Mid Market (Relatively Millmore, Dandekar
Underdeveloped)
About 1000 mills

Entry Level Market-Rs. 6000 mn

Entry Level Market
Players - Milltech, Local
(About 35,000 mills)
Manufacturers

Village level Market Village level Market

1992 2012
Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 14 of 15

Exhibit 7: Bühler India – Locations

Kolkata

Source: Company
<Bühler India - Assessing Growth Opportunities > <Case number> Page 15 of 15

Exhibit 7a: Bühler- Organizational Structure

CHAIRMAN

Supervisory Board

CEO

President- President- President- President - CFO

Grain Food Advanced Manufacturing
Processing Processing Materials & Logistics
Division Division Division

President- CTO President - Regions President - HR

President – Region South Asia

Head HR CTO CFO Executive Country Agents

Officers Managers (Nepal
(Pakistan & &Sri
Bangladesh)
Lanka)
Division
Manager
Head
Engineering
Sales Project
Manager