PRIYA: Diverting its focus

While Priya faced a decline in its revenue, it was the brisk business of AMD
and MSI products that helped the company sustain itself during the year

The company's total revenue declined in 2005-06 by 12 percent, after some
small gains in the previous fiscal. This was marked by the loss of important
principals like Western Digital and the indifferent response to Philips
products. The only solace came from brisk business done by AMD and MSI that
virtually sustained Priya during the year.

Priya cut down on its number of branches from 22 to 20 as per the data
received from DQ Top 20. The company appeared to be losing interest in the
distribution business, with focus shifting more on its two JVs (joint ventures)
with VXL Instruments and Ericom.

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CHAIRMAN: Aditya Bhuwania
Highlights Dropped Western Digital from its distribution kitty Sustained its business due to growing popularity of AMD and MSI products Formed JV with Israel's Ericom Software, its erstwhile principal Invested $2 million in equity in UK's VXL Instruments

During the year 2005-06, Israel-based Ericom Software joined hands with Priya
to strengthen its presence in the India market through the formation of a JV
company called Ericom India. While Ericom's relation with Priya was a
long-standing one with the latter distributing its products in India for the
last five years, the current JV further strengthens this relation.

Ericom India, however will be an independent operation with Aditya Bhuwania
and Moshe Reeche at the helm of the affairs, informed the company.

Statistics also show that the number of channel partners the company has been
dealing with reduced significantly. The company website claims to have a network
of 1,000 dealers spread across the country, while in the previous year the
company had informed of a presence of over 2,700 channel partners.

According to a recent statement made by the company officials, Priya is in
the process of appointing few key channel partners, especially for the new
ventures.

The number of employees working in Priya has also reduced from 200 mentioned
earlier to 150.