Jassa Singh Ahluwalia was born (1718-1783) at a village called Ahlu or Ahluwal near Lahore, established by his ancestor, Sadda Singh, a devotee of the Sixth Guru, Hargobind Singh. Hence the name Ahluwalia stuck to him. His forefathers were Kalals (wine merchants). Hence he is also called Jassa Singh Kalal.
Jassa Singh Ahluwalia is the first Ahluwalia (or Walia) from where all the Walias and Ahluwalias in the World have descended from.
It is a known fact that all the sects of Ahluwalias descended from Jassa Singh Kalal (Ahluwalia). In some parts of Himachal Pradesh, India, Ahluwalias and Walias are still referred to as Kalal.
Sardar Jassa Singh Ahluwalia is also the one who laid the foundation stone for the Golden Temple in Amritsar.
Finally, it must be mentioned, that Walias and Ahluwalias are Sikhs and Hindus. Jassa Singh Ahluwalia was Kalal, originally from a Hindu background, who became a Sardar (Sardar means Leader). Sardars were the fighting force created by Hindus during the invasion period of India. Every Hindu family used to make their eldest son a Sardar, to fight for the cause and protection of Hindus. This tradition is still followed in many families.
There are still Kalals all over the world, who are Hindus. Only the descendents of Jassa Singh Kalal are now known as Walias and Ahluwalias. A lot of Ahluwalias don’t use their last name as Ahluwalia or Walia, instead they use their Gotra, or even the name of the village that they were born in, or are originally from. This seems to be a tradition that is being followed from the old days when Jassa Singh Ji started using Ahluwalia (from Ahluwal).
Syed Mohd Latifs history of the punjab and some other history books point out that the earliest migrations to India from the north included people from present day Iran before it became Muslim. It was home to the finest wine makers in history This was around the period up to coming of Islam to the present Iran which disowned wine making and its consumption and forced wine makers to move out with their trade skills or perish. The proud and the best moved to the west to Europe across the alps to the Italian peninsula and the Iberian peninsula and disappeared having merged with the caucasian stock. Many moved east and came to India with roving traders. In those centuries the present region off Rajasthan was the most agriculturally productive area and their concentration was around Jaisalmer and Bikaner. Until today you will find traces of these people there. Of course they are Hindus because Sikhism did not reach these parts. Many settled in other parts of India. These people inter-married with other tribes in India.
Later due to geophysical shifts in weather pattern and rivers in India, Rajasthan became a desert and these people were forced to move to more fertile areas further north. There they came into contact with the growing Sikh influence and were converted. Those that settled in the Lahore areas close to the birth place of Sikhism became the first to do so. One of the places was called Ahlu and all of them who embraced Sikhism came to be called Ahluwalias. They dropped wine making as Sikhism like Islam forbade use of wine, and became businessmen traders and farmers. The rise of the Misls placed them in eminent position following one of their leaders assuming leadership of a Misla and their adeptness in simple business certainly helped.