To date, Virugambakkam is the only known source of natural gas in Chennai city apart from Avadi. Natural gas was discovered near Virugambakkam in 1966. However, paddy fields have completely disappeared. The soil is fertile and productive as is evident from the fact that paddy fields once covered the area. The good quality of ground water available in the Arcot Road suburbs was an important reason for the region's growth. Since then, growth has accelerated, peaking in the 1980s and 1990s.
Virugambakkam was included in Madras city in 1973 along with Saligrammam.
Until the early 1970s, the suburb of Kodambakkam formed the western frontier of Madras city. During those times, the outlying suburbs of the city alongside Arcot Road had a reputation for insecurity and as the haunt of sex. The town had a population of 8,013 in 1971. The interior area which makes up the middle-class residential colonies were covered by paddy fields.
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Apart from a few movie studios, there were only a few sparsely populated settlements. It formed a part of Saidapet taluk of Chengleput district. Until the 1970s, Virugambakkam was little more than an insignificant village. the meeting has been held in front of Arignar Anna, Karunanithi, M.G Ramachandran and some leaders in Dravida Munnetra Kazhagam. Dravida Munnetra Kazhagam has done a first state level meeting it has been organised by V.P Akilan. The Dravida Munnetra Kazhagam vigorously campaigned in the Virugambakkam region during the 1967 elections. Aranganathan, a 32-year-old employee with the Indian Postal Service immolated himself in protest against the imposition of Hindi. Virugambakkam was one of the important places connected with the Anti-Hindi agitations of 1965. The locality has since become a haven for movie producers and cine artists. In 1948, the first movie studios made their appearance when Avichi Meiyappa Chettiar shifted his base from Karaikudi. During the 1940s, Arcot Road was constructed connecting Nungambakkam with the Mount-Poonamallee Road.
At that time, it was a part of the Kodambakkam-Saligramam-Puliyur residential district of Greater Madras. Virugambakkam was one of the many localities which cropped up during the Second World War. The growth of Virugambakkam accompanied the expansion of Madras city during the years preceding independence. Its frontier with Alwarthirunagar forms the western limits of the Corporation of Chennai. Nagar and Ramavaram, Tamil Nadu to the south-east. It is bound by Saligramam in the east, Koyambedu to the north and Alwarthirunagar to the west and south-west and K.K. Virugambakkam is situated at a distance of 14.6 kilometres from Fort St George and 12.5 kilometres from Poonamallee.