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They want to design products, but the Three Engineers are specialising in everything else.

From left: T. Vineet, Makrand Dharphale and M. Parag Anand

FACT FILE

NAMES: T. Vineet; M. Parag Anand; and Makrand Dharphale
AGES: 27 years; 25 years; 27 years
EDUCATION: T. Vineet: B. Tech (Mechanical), IIT, Delhi, 1993; Masters in Design, IIT, Delhi, 1997; M. Parag Anand: B.Tech (Electrical), IIT, Delhi, 1995; Masters in Design, IIT Delhi, 1997; Makrand Dharphale: B. Tech (Mechanical), IIT, Delhi, 1994; Masters in Design, IIT, Delhi, 1997
BUSINESS: Design Consultancy
COMPANY: 5th Quadrant
INITIAL INVESTMENT: Rs 60,000
TRACK-RECORD: Turnover has shot up from Rs 12 lakh in 5 months of 1997-98 to Rs 45 lakh in 1998-99
NO. OF EMPLOYEES: 6 (+3 consultants)
WORK STYLE: Create synergies between creativity and pragmatism
MANAGEMENT PHILOSOPHY: Build customer satisfaction through best business and ethical practices
HOBBIES: T. Vineet: writing and debating; M. Parag Anand: design and art; Makrand Dharphale: sketching and music

A chair. A lamp. And a soda-making machine. When 3 young engineers from the Indian Institute of Technology (IIT), Delhi, successfully designed their first products, a start-up was then just a matter of design. In October, 1997, amidst the countless parties to celebrate their convocation, T. Vineet, M. Parag Anand, and Makrand Dharphale set up a design hothouse, 5th Quadrant.

All they had was savings of Rs 60,000--which was immediately invested in a PC--and a bagful of ideas on how to use their engineering skills to further product-design in the country. Explains T. Vineet, CEO, 5th Quadrant: "The quadrant is actually one-fourth of a circle. The 5th quadrant is the 25 per cent extra in design, which you cannot see, but appreciate." Eighteen months later, the ideas are still there. And the revenues. In the first 5 months of 1997-98, 5th Quadrant registered a turnover of Rs 12 lakh. And Vineet estimates that the company will close 1998-99 with a turnover of Rs 45 lakh.

Growth, however, has come at a price--and a change in character. Now, 5th Quadrant has turned into a one-stop design shop, specialising not just in products, but also graphics, transportation, concepts, exhibitions, interiors--and (!) corporate identity. It was, actually, the Rs 6,500-crore TVS Group (TVS) that gave the fledgling firm its first break into this arena. TVS' brief: design an exhibit for Auto India '98. Says a spokesperson: "We asked 5th Quadrant to put together a master-exhibit, which would portray the values of the group as a whole instead of simply representing our products."

In response, the troika conceived of a rotating, acrylic model, half-truck and half-car, and separated by mirrors. "It was built using fibre-optic cables, and an array of components manufactured by the group was displayed within it," recalls Parag, 5th Quadrant's models man. While Dharphale's skill is sketching, Vineet is the point-man for people-to-people interaction. And it worked. Admits the TVS spokesperson: "The TVS mobile was good as it was a good representation of TVS as a group."

Praise apart, designing for Indian industry has since been a disillusioning experience for the trio. For one, the IIT brand does not seem to cut any ice. That's strange, as an understanding of materials and structures, apart from innovation, is crucial for product-design. And these attributes, as its clients testify, 5th Quadrant has in plenty. Clearly, the problem lies elsewhere.

Most companies prefer cosmetic changes. Where, then, is the market? Sure, international companies need to localise their designs, but that is normally done in-house. And the domestic majors, by and large, prefer to outsource the design of their products. For instance, while telco's Indica was designed by idea in Italy, some companies develop products in-house, like Bajaj Auto, which has engineered its Legend and Bravo range of scooters at Pune, and TVS-Suzuki, which has designed its Spectra range of scooters at Hosur. Adds G.V. Soumitri, 38, Professor of Design, IIT, Delhi: "Design, by definition, is cosmetic. The problem is that design companies have not been able to market themselves like, say, doctors or lawyers."

In other words, design firms will have to work hard in future to prove their importance. That shouldn't be difficult; product-design and development lies at the heart of any cost-cutting strategy. Agrees Vineet: "There are hurdles, but we are sure that we will be able to change mindsets." However, that hasn't been the case--at least, until now. For instance, 5th Quadrant's second big client, the direct marketing company, Amway India, gave the design firm only a slightly different job: designing brochures and packaging. Now, Amway has asked 5th Quadrant to design its head-office in Delhi. Says Amit Chaudhery, 31, Corporate Communications Manager, Amway: "They are a very creative team. It may sound rather hackneyed if I am all praise for them, but they deserve it. They have provided extraordinary service, and go to extraordinary lengths to execute their job."

While 5th Quadrant's client-list includes hsbc, Schindler, Microsoft India, Electrolux, Electrolux, and Computer Associates, most of them wanted plain-vanilla graphic design jobs done. Fortunately, the company also got a chance to sink its teeth into product-design when, in December, 1997, the Rs 34-crore Narang Industries asked the firm to design a series of bottles for a brand of whiskey that it plans to launch in 1999.

Some of 5th Quadrant's latest projects provide cause for hope. For instance, when the American Institute for Transportation Development wanted to develop cycle-rickshaws, 5th Quadrant got the job. Adds Vineet mysteriously: "A telephone company has asked us to submit redesigned telephones for the mass market." And mindsets may well be changing. Says Sanjeev Goyal, 38, Deputy General Manager, LML: "We need people from outside who are able to think beyond the constraints. And it is our job to evaluate the feasibility."

However, the task will be arduous, especially in times of recession. While designs can be shopfloor translation of management strategies, costs can be controlled through designs conducive to Total Cost Management. However, since clients are reluctant to spend huge sums at one go, design firms need to convey the economic benefits of tinkering around with products. For example, in the soft drinks business, a well-designed two-litre bottle with an effective cap could easily jumpstart a family-pack marketing strategy.

5th Quadrant's big break in this context came in January, 1998, when scooters major LML approached it to redesign its 125-cc Star and the 150-CC NV. First, 5th Quadrant suggested an arrogant nose, with spoilers (visual attachments to the engine covers) on the sides to gave a feel of speed. But LML asked the trio to come up with something more "sober." Back to the drawing-board. While 5th Quadrant is reluctant to discuss the designs they finally came up with, if approved, they will be digitised for tooling. Says Amardeep Behl, 38, CEO, Design Habit Co.: "What is captivating is their (5th Quadrant's) enthusiasm. But the acid test for all new design firms like 5th Quadrant is survive 1,000 days. If you can survive that, the rest comes easy." If so, 5th Quadrant still has nearly 450 days to go.

A good design needs to take into account the customer, the manufacturer, and the seller. It also requires a command of behavioural studies, knowledge of materials and structures, as well as engineering techniques which make it happen. Finally, the design company has to possess a sound base in financial accounting and costing. While 5th Quadrant may comprise natural engineers, it has to create a bank of cost-accounting specialists.

Clearly, if companies are waking up to the importance of product-design in a globalising market, it is the job of firms like 5th Quadrant to convince them, by design, that they are upto the task in the New Millennium. And that could be the fifth element in Fifth Quadrant's strategy for tomorrow.