In May 1938, V.V. Giri, then minister of industries and labour in the Congress government of Madras, had written to industrialist G.D. Birla about the scope for an automobile factory in the state and what manner the government could help private enterprise in setting up the venture. Birla wrote in to reply, “After making a full investigation, we came to the conclusion that we are not quite sure whether under the existing circumstances a motor factory could be made a paying proposition.” By the 1940s, thanks to the war, conditions had changed drastically in favour of investment, enabling both Birla and Walchand to take the plunge.