That was news to me when I read Malabar Days. This interesting blog by Nick Balmer, a descendant of a British officer who was incharge of Dharwad jail, gives you a glimpse into textile manufacturing activity in Dharwad and Hubli 180 years ago.
Industries related to textiles in this region I know are; Garag where khadi is woven in two handloom units at Karnataka Khadi Gramodyoga Samyukta Sangha and Bhoruka Textiles Limited at Sattur.
Apart from these two there's nothing (I know) that can connect Dharwad to textile manufacturing. I spoke to few long-time residents of Dharwad and learnt that there were people who were into textile business many years ago and many such merchants shifted to gold trading.