Shanti Swarup Bhatnagar's first industrial problem was developing the process for converting
bagasse (peelings of sugarcane) into food-cake for cattle. This was done for Sir
Ganga Ram, the Grand Old Man of Punjab. He also solved industrial problems for
Delhi Cloth & General Mills, J.K. Mills Ltd. of Kanpur, Ganesh Flour Mills Ltd. of Layallapur, Tata Oil Mills Ltd. of Bombay, and Steel Brothers & Co. Ltd. of India. His major innovation was an improvement of the procedure for drilling
crude oil. The Attock Oil Company at Rawalpindi (representative of Messers Steel Brothers & Co London) had confronted a peculiar problem, wherein the mud used for the drilling operation was hardened upon contact with
saline water, thereby clogging the drill holes. Shanti Swarup Bhatnagar realised that this problem could be solved by
colloidal chemistry. He added an Indian gum, which had the remarkable property of lowering the
viscosity of the mud suspension and of increasing at the same time its stability against the
flocculating action of
electrolytes. M/s Steel Brothers was so pleased that they offered Bhatnagar a sum of Rs. 1,50,000/- for research work on any subject related to
petroleum. The company placed the fund through the university and it was used to establish the Department of Petroleum Research under the guidance of Shanti Swarup Bhatnagar. Investigations carried out under this collaborative scheme included deodorisation of waxes, increasing flame height of
kerosene and utilisation of waste products in the
vegetable oil and
mineral oil industries. Recognizing the commercial success of the research, the company increased the fund, and extended the period from five years to ten. Shanti Swarup Bhatnagar persistently refused any personal monetary benefit from his research fundings, and instead advocated for strengthening research facilities at the university. Meghnad Saha wrote to Shanti Swarup Bhatnagar in 1934 saying, "You have hereby raised the status of the university teachers in the estimation of public, not to speak of the benefit conferred on your Alma Mater". Shanti Swarup Bhatnagar wrote jointly with K. N. Mathur
Physical Principles and Applications of Magnetochemistry which is considered a standard work on the subject.
Establishment of CSIR The first industrial research organisation in India was created as an Industrial Intelligence and Research Bureau, which came into operation in April 1935 under the Indian Stores Department. With its limited budget of Rs. 1.2 lakhs per year, the bureau was virtually inactive. In 1939, there was a strong movement to abolish the bureau, and to replace it with a Board of Scientific and Industrial Research, similar to the British BSIR. Under the persuasive pressure of
Arcot Ramaswamy Mudaliar, the Board of Scientific and Industrial Research (BSIR) was formed on 1 April 1940 for a period of two years. Shanti Swarup Bhatnagar, as a leading scientist of the time, was appointed as the director, and Mudaliar became the chairman. The BSIR had an annual budget of Rs. 5 lakhs which was placed under the Department of Commerce. Shanti Swarup Bhatnagar persuaded the government to set up an Industrial Research Utilisation Committee (IRUC) in early 1941 for further investment into industrial research. Mudaliar also won the demand for an establishment of Industrial Research Fund, and that it should have an annual grant of Rs 1 million for a period of five years, at the Central Assembly in Delhi at its session on 14 November 1941. These finally led to the constitution of the
Council of Scientific and Industrial Research (CSIR) as an autonomous body, which came into operation on 28 September 1942. The BSIR and IRUC became the advisory bodies to the governing body of the CSIR. In 1943, the governing body approved the proposal mooted by Shanti Swarup Bhatnagar to establish five national laboratories – the
National Chemical Laboratory, the
National Physical Laboratory, the Fuel Research Station vvnvv, and the Glass and Ceramics Research Institute. This was the beginning of scientific laboratories in India. ==Later years==