Canon Margoschis built a small hut hundred yards away from his bungalow for the orphans in 1877. As the number of orphans increased, he took efforts to put up a building for them and the same was built in 1878 in the place where the Art Industrial School is now. He was made aware of his responsibilities and obligations towards the less-privileged and was very anxious to introduce teaching for them on industrial courses. Hence he founded the Art Industrial School in the orphanage itself on 14-11-1878. Carpentry, Black-smithy and sewing courses were started and then weaving section was introduced. In 1884, the first sewing machine was bought and the art of tailoring was introduced. The lower Secondary Training was provided and in 1900, Upper Secondary Training was transferred from Tuticorin to Nazareth. He was the manager of the school until his death. In those days the Art Industrial School, the brain-child of Canon Margoschis, was praised as the only one of its kind in the district and the oldest in the Presidency of Madras.