<P> The success of Dutch and English traders in the 17th century spice trade was a source of envy among Danish and Norwegian merchants . On March 17, 1616, Christian IV the King of Denmark - Norway, issued a charter creating a Danish East India Company with a monopoly on trade between Denmark - Norway and Asia for 12 years . It would take an additional two years before sufficient capital had been raised to finance the expedition, perhaps due to lack of confidence on the part of Danish investors . It took the arrival of the Dutch merchant and colonial administrator, Marchelis de Boshouwer, in 1618 to provide the impetus for the first voyage . Marcelis arrived as an envoy (or at least claimed to do so) for the emperor of Ceylon, Cenerat Adassin, seeking military assistance against the Portuguese and promising a monopoly on all trade with the island . His appeal had been rejected by his countrymen, but it convinced the Danish King . </P> <P> The first expedition set sail in 1618 under Admiral Ove Gjedde, taking two years to reach Ceylon and losing more than half their crew on the way . Upon arriving in May 1620, they found the emperor no longer desiring any foreign assistance having made a peace agreement with the Portuguese three years earlier . Nor, to the dismay of the Admiral, was the Emperor the sole, or even the "most distinguished king in this land". Failing to get the Dano - Norwegian - Ceylonese trade contract confirmed, the Dano - Norwegians briefly occupied the Koneswaram temple before receiving word from their Trade Director, Robert Crappe . </P> <P> Crappe had sailed on the scouting freighter Øresund one month prior to the main fleet . Øresund had encountered Portuguese vessels off the Karaikkal coast and was sunk, with most of the crew killed, or taken prisoner . The heads of two crew members were placed on spikes on the beach as a warning to the Dano - Norwegians . Crappe and 13 of the crew however had escaped the wreck, making it to shore where they were captured by Indians and taken to the Nayak of Tanjore (now Thanjavur in Tamil Nadu). The Nayak turned out to be interested in trading opportunities and Crappe managed to negotiate a treaty granting them the village of Tranquebar (or Tharangamabadi) and the right to construct a "stone house" (Fort Dansborg) and levy taxes . This was signed on 20 November 1620 . </P> <P> The early years of the colony were arduous, with poor administration and investment, coupled with the loss of almost two - thirds of all the trading vessels dispatched from Denmark . The ships that did return made a profit on their cargo, but total returns fell well short of the costs of the entire venture . Moreover, the geographical location of the colony was vulnerable to high tidal waves which repeatedly destroyed what people built--roads, houses, administrative buildings, markets, etc . Although the intention had been to create an alternative to the English and Dutch traders, the dire financial state of the company and the redirection of national resources towards the Thirty Years' War led the colony to abandon efforts to trade directly for themselves, and instead to become neutral third party carriers for goods in the Bay of Bengal . </P>

In which place the danish started the trading centre in india