Karur, one of the ancient cities in Tamil Nadu was ruled by the Cholas, the Naickers and the British successively. There is proof that Karur may have been the centre for gold jewellery-making and gem setting (the gold imported mainly from Rome), from various excavations. According to Hindu mythology, Brahma began the work of creation here, which is referred to as the "place of the sacred cow." It is bounded by Namakkal District in the north, the Dindigul District in the south, the Tiruchirappalli District on the east and Erode District on the west. The city is famous for its cottage industries. The Chettinad cement factory is located here. Milled rice, cotton fabrics, and brassware are the city's chief products

Tamil Nadu News Print and Papers Ltd., better known as TNPL the country’s largest non-wood based paper maker was established in the early 80’s at Pugalur near Karur. It is acknowledged as the world leader in the technology for manufacture of newsprint from bagasse which became operational from January 1996. The production of news print and paper have been raised from 90000 tonnes to 180000 tonnes per annum.

It is the most Modern paper mill in the country with an unique bagasse handling and pulping system, multifuel boilers, mechanized finishing section and a sophisticated R & D center. The TNPL’s 6.8 metre wide paper machine from the U.K. designed for maximum, operational since 1985, producing quality news print and printing and writing paper.

On the international textile map, Karur has become synonymous with handloom “made-ups” first as Tirupur in the hoisiery product. The weaving industry came to Karur from Kerala and has earned a reputation for its high quality handloom products today.Exports of handlooms from Karur began on a modest scale with just 15 exporters in 1975and today Karur has 100s of exporters. The handloom products being exported have beenbroadly classified under three heads – Kitchen, bathroom and bedroom furnituring items. Some of the handloom made-ups exported from Karur are Bedspreads, Towels,Floor rugs, Tea towels, Napkins, Aprons, Kitchen towels, Pot holders Plate mats, BathMats, Tea mats, Curtains, Pillow, Quill covers, Shower curtains etc.,

The products are exported to Europe, U.S.A., Japan, Canada, Australia, Singapore, South Korea, South Africa and the Scandinevian countries among others. The handloom industry in Karur generates nearly an annual turn over of Rs.1000 Crores with Rs.700 Crores of direct and indirect exports of textile goods.The development of export as a major trade has led to the enormous growth of other allied industries like handloom and powerloom weaving units, dyeing and bleaching units, tailoring, packaging units etc. The handloom and its allied industries provide direct and indirect employment to over a lakh of persons.