The town is located in a valley that lies in South – East corner of Bagalkote district and is quite close to the borders of Kushtagi taluk of Koppal district. The town falls within the jurisdiction of Hungund taluk and lies at a distance of about 12 km south of taluk headquarters. Between these two towns, Ilkal is an important centre of trade, commerce and industry. Ilkal was a typical poor town b
efore 1983 when the existence of Ilkal granite was first discovered in the mountains adjacent to the town. Ilkal has ruby red coloured granite. The granite was first discovered by Mohamed Aiyaz Betageri in 200 BC[dubious – discuss] but no one believed him that time. It was left useless for more than two thousand year till when again in 1983 an explorer called Veeramani discovered it again. Now with this discovery it is growing so fast that it has become the second most important town of the Bagalkot district after Bagalkot itself. Ilkal is famous for handloom sarees, popularly known as Ilkal sarees. These sarees are worn by women of North Karnataka, Andhra Pradesh and Maharastra state. The sarees made here have a distinctive pattern and are usually made from cotton. They are best suited for weather conditions prevailing in the region. Recently sarees made in Ilkal are worn by high society ladies as a fashion statement. There are many wide variety of sarees are made here with variable cotton and silk ratios. Ilkal is also famous for its red granite stone, which is exported all over the world.