By the mid seventeenth century three European Companies viz., the Dutch, the English and the French had acquired and consolidated their settlements on the coast of Andhra. Every company had its own capital on the Andhra coast. The most deeply penetrated among them were the Dutch. They had founded a castle with all the necessary fortifications in 1613 at Pulicat.
The English and the Dutch had spread out into a number of factories or trade settlements in ports all along the coast line around Nizampatnam to Nellore. Though not in any effective manner, the Portuguese continued their tottering presence on this coast at Nagapatnam and San thome along with a civilian settlement at Porto Novo. The Portuguese land power had been chiefly confined to the Malabar coast and Ceylon although they possessed out lying factories in the Mughal empire and on the Coromandel coast.
The main interest of the Dutch during the initial stages was more diverted towards the Indonesian Islands of Java, Sumatra and the spice islands. They concentrated on this region and consolidated their trading enterprise. Only after gaining control over the most important and profitable part of Asian trade, they began trying for Indian trade. Once set their foot on Indian shores, they had gone in for the establishment of their factories at Surat, Masulipatnam, Bimilipatnam, Narsapur and Nagapatnam. Needless to say, of these five factories, three were on the Coastal Andhra region in the immediate Neighbourhood of Nizampatnam to Nellore.
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