RIFLE RANGE BOY: #Nattukottai Chettiar

Fortune Seekers: A Business History of the Nattukottai Chettiars
Author: Raman Mahadevan(2025)

The Chettys are believed to have been present in the Malay Peninsula as early as the 16th century in the history of the Malacca Empire, according to Portuguese writings, when they arrived on Malacca's shores. The community, known as Chetty or Chitty in Malacca, had its own distinctive way of life, integrating with the local population, establishing places of worship, and holding significant positions in the Sultanate. They are said to originate from the Coromandel (Eastern) Coast of India. Interestingly, their settlement is called 'Gajah Berang' — 'Angry Elephant' in Malay. This might also be a corruption of Kanchipuram's old name, Karca Pidam. Therefore, the Chittys could have originated from Kanchipuram rather than Nattukottai.

In many P Ramlee films, the character of a Chetty frequently appears as the stereotypical moneylender.

It has been said that much of the State lands belonging to the Sultans changed hands to the Chettys in the late 19th and early 20th centuries. One particular monarch, who was addicted to booze and gambling and a bad gambler too, lost much of his property by signing it away to obtain loans from Chettys to feed his gambling addiction. Usually, the loans were not repaid, leading to the lands being seized and taken over by the Chettys. Concerned local chiefs approached the British administrators, who proposed the Malay Reserve Land Code to preserve State lands for the Malays, that is, within the control of the Sultans, the protectors of Malay sovereignty.

Many groups within the Indian population are naturally entrepreneurial. These include the Mawaris, Khataris, Multani, Parsi, Baniar, Sindhi, Chetti, and many others. They possess sharp business skills and have an exceptional ability to foresee and grasp future economic trends.

https://www.thestar.com.my/news/nation/2021/11/13/
ethnic-chetty-residents-want-more-effort-to-preserve-village

In my hometown, Penang, the Nattukottai Chettiars are renowned for organising the now world-famous annual three-day Thaipusam celebrations with chariot processions and hundreds of kavadi-bearing devotees. To support these events, they have built a large temple complex along Waterfall Road and a silver chariot to oversee the entire celebration. Historically, the Chettiars owned extensive land in Malaysia for much of the first half of the 20th century. However, following the unrest associated with communists (between 1948 and 1960) and the race riots in 1969 in the newly independent Malaya, the Chettiars chose to liquidate their assets and return lock, stock and barrel back to India.

The history of the Nattukottai Chettiars dates back to 2893 BC. By the late 19th century, they had established themselves around the princely State of Puthukottai in South India. They were also known as Nagarathars. The area they inhabited was not suitable for farming, so they evolved into a mercantile community and small local traders. The rule of the British Raj in India made doing business more difficult, leading the Chettiars to explore overseas opportunities for expanding their money-lending enterprise.

The opening of the Suez Canal in 1869 radically changed global commerce. The plantation economy began to develop in colonies such as Ceylon, Burma, Indochina, and Malaya. The demand for credit surged, and the Chettiars stepped in to meet the need by lending to local planters in these regions.

70% of all loans in Burma in 1930 were from Chettiars.
https://www.yangontimemachine.com/en/index?id=24&art=chettiar_temple

In Burma and Indochina, rice plantations expanded to meet global demand. Crops such as coffee, tea, and coconut were cultivated on a large scale in Ceylon. Rubber estates flourished in Malaya. Tin mining commenced in Malaya in the early 20th century. Chettiars prospered by doing what they did best—being moneylenders. Their primary activity was an intra-community banking system based on trust and risk-taking. Within the community, they established a support network to ensure that each member received assistance and that disputes between members were resolved internally, without resorting to legal action. Their intra-community bond was powerful. Sadly, the Nagarathars were not particularly friendly with the locals. It was all business. This proved to be an albatross around their neck when the Saya San rebellion broke out in Burma.

The business was a roaring success for them until 1928, when the world faced the Great Depression. Some had cut their losses and returned home, while others bought large parcels of land when borrowers were unable to repay their loans. The Chettiars became major landowners.

Their businesses faced further difficulties when World War II broke out. The depreciation of local currencies and the switch to Japanese Banana money in Burma and Malaya resulted in overwhelming losses. In Burma, resistance manifested as regional nationalism, such as the Saya San Rebellion, and many of their properties were nationalised. Thousands of Chettiars had to flee on foot as refugees back to India.

Some Chettiars repatriated their capital to India. Many shifted to managing cotton mills, modern industries, education, and banking. A small number of them never recovered from their losses. Over-commitment to money lending and an unwillingness to diversify led to the collapse of their traditional business model.

By 1938, ~25% of Burma's rice-growing areas were in Chettiar hands.
https://www.yangontimemachine.com/en/index?id=24&art=chettiar_temple

Their apparent presence in the modern world, from 1870 onwards, throughout post-independent India, has left an indelible mark. A few figures have secured their place in Indian history.

There was Sir Annamalai Chettiar, an industrialist, banker, philanthropist, and educationist. He is immortalised in the university bearing his name. Another legendary Nattukottai Chettiar is Dr Alagappa Chettiar, one of the first in the community to study English and decide to read Law at the University of London. During his stint in the UK, he worked part-time in the banking sector and acquired a flying licence. Despite completing his course, he was refused permission to practise Law in the UK because he had contracted leprosy, which had slightly disfigured his face. He returned home to found Alagappa University and fund hospitals. Later, he founded Jupiter Airways, which played a crucial role in bringing refugees to India during the Partition. He was the youngest Indian to be knighted in 1946, but he voluntarily renounced the title after India's independence. Alagappa Chettiar's business portfolio included the acquisition of Ayer Manis Rubber Estate in Muar, Johor, in Malaya during the 1920s.

Then there was MCT Chidambaram Chettiar, the founder of Indian Overseas Bank. One of the survivors of the Burma ordeal is the group of AMM Murugappa Chettiar. He relocated to India and ventured into manufacturing cycles, steel tubes, ceramics, sugar, fertilisers, financial services, and more. The Murugappa Group has become a powerhouse of the Indian industry.

Karumuthu Thiagaraja Chettiar was another textile magnate, philanthropist, and supporter of the arts and Tamil language. He was a freedom fighter and a member of the Indian National Congress. This should not be confused with Sir Pitty Theagaraya Chettiar, another notable industrialist and a founding member of the Justice Party. The affluent neighbourhood of T. Nagar in Chennai is named after him. Pitty did not belong to the Nattukottai Chettiar community but to the Telugu-speaking Devanga Chetty community.

AV Meiyappa Chettiar is known for his AVM Studio, AVM Production House and his role as a doyen in Tamil cinema during its golden age.

In Malaysia, the average person might not fully appreciate the business savvy and close-knit qualities of the Nattukottai Chettiars. They might only learn about their black umbrellas, the ash spread on their foreheads, and their money-lending trades after watching several P Ramlee movies. One thing they would not overlook is the Chettinad eateries and their delicious cuisine, which can be found all over town.

(N.B. Over the last decade, a conspiracy has emerged regarding the Nattukottai Chettiar-managed silver chariot used during Penang's Thaipusam procession. It was alleged that the monies offered by the public do not go towards the uplift of Hindus or the maintenance of Hindu temples in Penang. The Chettiars were accused of siphoning off the collection to Chettinadu in Tamil Nadu. The Penang Hindu Endowment Board, in retaliation, introduced a golden chariot in direct competition with its silver counterpart.)