http://bangalore.metblogs.com/archives/2007/06/hollywood_and_switzerland_are.phtml

In America, the movie city is called Hollywood, so in Bombay, the movie industry is called Bollywood. Tollygunjge is the area for Bengali movies and is called Tollywood, and Chennai’s Kodambakkam area is called Kollywood. And Bangalore’s (Karnataka’s) film industry is called…Sandalwood!