While traveling by train during the 1940s, A. Lakshmanaswami Mudaliar, Vice Chancellor of Madras University, had a casual conversation with Alagappa Chettiar and mentioned his interest of starting technology related courses in Chennai. The casual talk inspired the philanthropist, and he donated an amount of five hundred thousand Indian rupees for the formation of a college. This led to the establishment of Alagappa College of Technology.