The first knitwear unit in Tirupur was set up in 1925 and the growth of the industry was slow till late 1930s. A series of strikes in late 1930s in knitting factories in the neighboring towns of Salem and Madurai resulted in the opening of new firms in Tirupur. Subsequently, it emerged as the prominent centre for knitwear in South India by 1940s. In 1942, 34 units were engaged in the production of knitwear all these units were composite mills and the production was carried out in the same unit (sic). There are also references to some units performing specific tasks / operations like bleaching and dyeing, located in the larger units. By 1961, the number of units rose to 230 and till early 1970s, the industry catered only to the domestic market. These units were mostly composite mills without any subcontracting system of production. It was in the 1980s, the export market began to expand and subsequently Tirupur emerged as the largest exporter of cotton knitwear from the country, accounting for roughly 80 percent of the total cotton knitwear exporters.

Tirupur’s direct exports started with Italy. Verona, a garment importer from Italy came to Tirupur in 1978 through Mumbai exporters to buy white T-shirts. A lot of job workers were manufacturing garments for merchant exporters. He realised the potential and came to Tirupur the following year. Verona was the man who brought European business to Tirupur. On seeing the quality, others soon followed suit. In 1981 European retail chain C&A came. Gradually, other stores also approached the exporters for supplying of garments. A handful of manufacturers exported garments worth Rs.15 crore in 1985. The next couple of year was a windfall for Tirupur as exports touched Rs.300 crore in 1990.