In 1497 the Portuguese discovered the route to India and began to expand their influence by occupying coastal areas and building harbour towns, which soon extended more than 12.000 miles of coast-line.
The Portuguese established a factory at the beginning of the sixteenth century, but were compelled to leave a century later by the ruler of Gingee, who found them unfriendly. After that the Danes shortly set up an establishment, and likewise the Dutch. The latter set up trading posts in Porto Novo and Cuddalore. The French, who had trading centres in the North,Mahe and Madras were invited to open a trading centre in Puducherry by the new ruler of Gingee to compete with the Dutch.