Bangalore-based Hind High Vacuum Co (HHV), India's premier thin film and vacuum technology company with close to 60 years of expertise in the design and manufacture of high vacuum equipment for research and industrial applications, has announced a demerger plan to create a simplified corporate structure. The revised structure will have two separate entities for vacuum systems and for thin film-focused businesses respectively. This restructuring is to unlock the growth potential of each of its businesses.

The Regional Director, South-Eastern Region, Ministry of Corporate Affairs, Hyderabad has approved the demerger of the Vacuum Systems business into HHV Thermal Technologies Private Limited and Thin Films business into HHV Advanced Technologies Private Limited. Both HHV Thermal Technologies Private Limited and HHV Advanced Technologies Private Limited are 100 per cent subsidiaries of HHV. 

Accordingly, the Vacuum Systems division which manufactures state of art vacuum furnaces and carbon-carbon composites within HHV has been transferred to HHV Thermal Technologies Private Limited including the design, manufacturing rights, employees, customers and suppliers. All pending orders will now be executed by HHV Thermal Technologies Private Limited.

Similarly, the Thin Films division which manufactures a full range of PVD and other technology-based thin film deposition equipment and the thin film coatings division which manufactures a full range of optical components from flats to lenses covering the UV, Visible and Infra-Red space within HHV has been transferred to HHV Advanced Technologies Private Limited including the design, manufacturing rights, employees, customers and suppliers. All pending orders will now be executed by HHV Advanced Technologies Private Limited.

Strategic Rationale:

• The demerger and simplification of the corporate structure is expected to create synergies for both businesses.

• It will simplify the HHV corporate structure with two separate pure-play entities in Vacuum Systems and Thin Films business.

• It will further strengthen governance architecture for the businesses with separate dedicated Boards and Management teams.

• It will create an optimal capital structure for each business.

• It will give both entities the ability to independently pursue growth plans organically and inorganically.

Outcome:

• The demerger and simplification of the corporate structure will lead to the creation of separate sector-focused entities in Vacuum Systems and thin Films business.

• It will attract business-specific specialists and reputed professionals to be part of its Board or the Management team to take them the expected growth levels.

• The individual companies will be focussed to upgrade and invest in newer technologies within their specific businesses.

• Both companies will continue to operate within the overall vision and principles laid out by HHV thereby ensuring the business principles and integrity are protected.