<P> In the next two years, the company established its first factory in south India in the town of Machilipatnam on the Coromandel Coast of the Bay of Bengal . The high profits reported by the company after landing in India initially prompted James I to grant subsidiary licences to other trading companies in England . But in 1609 he renewed the charter given to the company for an indefinite period, including a clause that specified that the charter would cease to be in force if the trade turned unprofitable for three consecutive years . </P> <P> English traders frequently engaged in hostilities with their Dutch and Portuguese counterparts in the Indian Ocean . The company achieved a major victory over the Portuguese in the Battle of Swally in 1612, at Suvali in Surat . The company decided to explore the feasibility of gaining a territorial foothold in mainland India, with official sanction from both Britain and the Mughal Empire, and requested that the Crown launch a diplomatic mission . </P> <P> In 1612, James I instructed Sir Thomas Roe to visit the Mughal Emperor Nur - ud - din Salim Jahangir (r . 1605--1627) to arrange for a commercial treaty that would give the company exclusive rights to reside and establish factories in Surat and other areas . In return, the company offered to provide the Emperor with goods and rarities from the European market . This mission was highly successful, and Jahangir sent a letter to James through Sir Thomas Roe: </P> <P> Upon which assurance of your royal love I have given my general command to all the kingdoms and ports of my dominions to receive all the merchants of the English nation as the subjects of my friend; that in what place soever they choose to live, they may have free liberty without any restraint; and at what port soever they shall arrive, that neither Portugal nor any other shall dare to molest their quiet; and in what city soever they shall have residence, I have commanded all my governors and captains to give them freedom answerable to their own desires; to sell, buy, and to transport into their country at their pleasure . For confirmation of our love and friendship, I desire your Majesty to command your merchants to bring in their ships of all sorts of rarities and rich goods fit for my palace; and that you be pleased to send me your royal letters by every opportunity, that I may rejoice in your health and prosperous affairs; that our friendship may be interchanged and eternal . </P>

The east india company was founded in india during the reign of which mughal emperor