As we know the first use of the word Bollywood is in this article by Mulk Raj Anand titled, Sex in Bollywood, in the Times of India Bombay Edition Oct 12, 1969. This was later quoted in a well-known dictionary.
However, Bombay was called 'Hollywood of India' as early as 1943, maybe even earlier.
From the recent book by Nitin Govil
Now You Know!