Dhirendranath Ganguly, who was commonly referred to as DG, was then the principal of the Hyderabad Art College. His passion for cinema prompted him to visit the Madans when he came to Kolkata during his vacations. He had wanted to cinematically adapt Tagore’s Bisararjan. During this time, he became friends with Nitish Lahiri. Barrister Nitish was then the legal advisor of Madan. Both DG and Nitish became passionate about opening a Bengali film company and quit their respective jobs.  Maniktala’s PN Dutta who had business ventures in manufacturing buckets, came forward as an investor. The office was first housed at 21 Mohunbagan Lane. Subsequently, it shifted to a new address – 34 Mohunbagan Lane. The garden house of the Jains in Bonhooghly was taken on lease to set up the studio. Cinematographer Jyotish Sarkar too quit Madan to join this news enterprise. 
Nitish adapted DG’s story to direct a Bengali comedy called Bilet Pherat. It opened at Russa Theatre in 1921. This was the first film to be made by a complete Bengali establishment. The film became the talk of the town though there were mixed reactions regarding its quality. The next two films did not run that well. During the course of time, there was divergence of opinions between Nitish and DG. The latter returned to Hyderabad during the making of the third film (it was released before the second film). The bucket business of the Duttas was also no longer doing well then. They stopped the financial investment.Despite all these hurdles, Nitish began to work on a film based on Ramayana stories. However, he could not finish it. Sisir Bhaduri bought all the equipment from Nitish for his Taj Mahal studio. Indo British Company shut down after making three films.