Friends, our story begins in the year 1600, when the East India Company was founded by some merchants. It was a Joint Stock Company, i.e., its business was owned by shareholders. At the outset, there were only 125 shareholders. They came together to raise £70,000 as capital. The object to create this company was to trade in spices. In the Spice Islands of South-East Asia.
The next year, in 1601, the East India Company undertook its maiden voyage and set up 2 factories in Indonesia. Back then, on the Indonesia islands, Spanish and Portuguese traders were already in business. Additionally, the Dutch traders had recently begun trading in the area.
The Dutch company was more profitable than the English company. They had more money and a better army. With time, they became the dominant power in the area. The British East India Compay realised that they needed to shift their operations because there was no scope for competing with the Dutch. To avoid conflict, they started looking at other areas. Eventually considering India.
