Formation Carpets, founded in Kathmandu, Nepal, by Sulo Shrestha-Shah, in 1990, is about carpet production with a DIFFERENCE. Not just carpet production, but carpet production fueled by a focus on welfare of the employees and conservation of the environment.

Carpets with exclusive designs and of outstanding quality, balanced with the fact that these carpets are produced by employees in sound working conditions, and are environment friendly, is the mode in which Formation Carpets operates. All of Formation's carpets feature the RUGMARK smiling face label that guarantees that no child has been employed in any process related to the production of the carpet, including dying and spinning.

Sulo Shrestha-Shah was awarded the 1997 MAHR Human Rights Award for her continuous spearheading of social issues from the business sector, her work at Formation Carpets, and pushing her motto "business with ethics."