Madras Hi-Tech Circuits, promoted by Simpson & Co (a part of the Amalgamations group) jointly with Electronics Corporation of Tamilnadu (ELCOT), was incorporated on 19 Apr.'89 in Madras. The group is one of the largest engineering houses in south India, dealing in a variety of engineering products and services. The company is a 100% EOU, manufacturing 15,000 sq m of single, double-sided and multi-layered professional-grade printed circuit boards. The PCB is a basic hardware component in any electronic equipment used for fabrication, as it interconnects the electronic components and also provides them with mechanical support. It is used in computers, communications, consumer durables, military and industrial electronics. The company entered into a turnkey agreement with J R Controls Inc (JRC), US, to finance and assist it in marketing its produce in the export markets. Around 80% of the raw material is imported. The raw material content in production is around 45%. The company plans to increase its production capacity, as the margins in the electronic component industry are very thin and sustained profitability can be achieved only by producing high volumes.