SURYA MAKES COMMITMENT TO FUTURE WITH AGGRESSIVE GROWTH PLANS Surya president Satya Tiwari

By Lissa Wyman

CALHOUN, GA -- "It's not about the dollars you spend. It's about the RETURN on those dollars." That is the philosophy of Satya Tiwari, president of fast-growing Surya.

Tiwari's comment answers one of the questions that a lot of rug people have been asking during the last two years: "Why is Surya spending all that money???"

Tiwari was named president of Surya in May 2004 and some of the projects he has launched since then include:

• Expansion and diversification of the product line to include coordinated wall art, throws, pillows and other decorative accessories
   
• Hiring a multi-talented  staff  that includes highly experiences  sales, marketing, merchandising, product development and operational executives.
   
• The opening -- and expansion -- of corporate offices and distribution facilities in Calhoun, GA
   
• New licensing programs with B Smith, Bob Mackie and Cabana Joe.
   
• Expansion of existing showrooms and the opening of new showrooms in New York and Las Vegas.
   
• Big-bucks  ad programs in the home furnishings trade press and big-bash parties at such major markets as Atlanta and High Point.

There is more to come, Tiwari promised. A new website is scheduled to be launched July 15. It will feature state of the art, user-friendly features.

In addition, there will be new product categories will keep coming onstream. Surya will add lighting in October and tabletop items in 2009.

All of these high-profile changes have resulted in a  50% increase for Surya revenues in the fiscal year that just ended.

The payoff is much more than increased sales, Tiwari noted. "We keep finding new buyers that we didn't know were out there. Having new customers teaches us new strategies,"

In addition to independent stores, Surya works closely with several major furniture chains and furniture suppliers on a silent partnership basis.

Surya sells rug stores, furniture stores, catalogs, gift retailers and internet retailers. "We sell very vigorously on the Internet," he said. "If everyone agrees to work on MAP (Minimum Advertised Price) standards, it works."

For Surya, the furniture channel is a major growth area. "Rugs go far beyond being a commodity. They are an integral part of decorating. We emphasize merchandising various products together based on a variety of color palettes. It's something that furniture stores understand immediately," Tiwari explained.

The key to success in the Surya approach is how the products are merchandised together on the selling floor.

"We are developing a lot of point of purchase material to show how to cross merchandise our products. We are working closely with our customers to put it all together. We have also hired a visual merchandising expert that works with our staff, sales reps and customers," said Tiwari.

Commenting on the current economic crisis, Tiwari said that bad times sharpen business skills. "A bad economy gives us the opportunity to try new techniques, and the industry tends to lose the marginal operators. A bad economy shakes out the weaker players," he said.

In a down economy, fashion  -- not price -- should play an increasingly important role, Tiwari emphasized. "No buyer ever gets rewarded for how cheaply they buy. They get rewarded for the sell-through," he stressed.

In March 2006, Surya moved to a new 75,000 sq. ft. distribution center and executive offices in Calhoun. Another 75,000 facility was opened next door in March 2008. "We strongly emphasize fresh inventory," said Tiwari. "We currently have an 80% fill rate."

Next on the company's to-do list is full automation of the distribution system with an upgraded and powerful erp system. The upgraded system will be operational in six months to a year, according to Tiwari.

Over the next two years, there will be further changes to Surya's business plan, Tiwari promised. "Eventually, less than 50% of our business will be in rugs," he said.

Preparing for the future, Surya is dropping the "Rug" from its name. From now on, the company will be known simply as Surya.

6.09.08