The village is located on the National Highway-381A, where it bisects Erode Ring Road.

[2] The economy of this urban area is primarily based on power-looms and textile production.

A large number of loom units are present in this area, driving the textile trade.

Kongu Vellala Gounders, a community with a strong agricultural background in the surrounding villages, are also engaged in commerce in the town.

With the Regional Transport Office (RTO) just a kilometre from Lakkapuram, and expectations that the corporation area will be extended, real estate prices have soared.