"I thank Mani Bhaumik for his philanthropic leadership and for believing in UCLA," said UCLA Chancellor Gene Block.
The Mani L Bhaumik Institute for Theoretical Physics is intended to become a world-leading center for theoretical physics research and intellectual inquiry, the university said in a statement.
The Bhaumik Institute will host visiting scholars, organise seminars and conferences for the academic community, and begin a public outreach programme to teach the community about scientific advances made by UCLA physicists.
He was born in a remote village in West Bengal, and as a child slept on rags in the thatched-roof mud hut he shared with his parents and six siblings.
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"I didn't own a pair of shoes until I was 16 and walked four miles to school and back in my bare feet," he added in the UCLA statement.
Studying under renowned physicist Satyendra Bose, he earned a master's degree at the University of Calcutta.
Bhaumik came to UCLA in 1959 - "with USD 3 in my pocket", he said - on a Sloan Foundation postdoctoral fellowship. The people of his village raised the money for his airfare, the statement said.
"Everyone was treated equally, not like back at home where the poor were treated like dirt.
In 1961, Bhaumik joined Xerox Electro-Optical Systems as a laser scientist. He later served as director of the laser technology laboratory at Northrop's corporate research laboratory.
In 1973, he announced the conclusive demonstration of the world's first efficient excimer laser, a form of ultraviolet laser now commonly used for high-precision machining and for cutting biological tissue cleanly without damaging surrounding tissue.
"It's very difficult to raise funds for this area, because people don't understand what theoretical physicists do. But physics holds the answers to the most fundamental questions of our very existence.Imagine what could be solved right here at UCLA," he said.