The Dutch established a factory at Vengurla in 1649. Their trade flourished there. However, their trade was severely affected when Chhatrapati Shivaji Maharaj attacked Kudal. In 1665, the Mughal subedar of Surat asked for help for destroying the Maratha naval force. However, the Dutch offered no help. Chhatrapati Shivaji Maharaj had allowed them to build a factory at Dabhol. The political relations between the Dutch and the Marathas kept changing to suit the need of the time.
The Marathas did not harm the Dutch factory at Surat. Also, during the Karnataka campaign, the Marathas ensured the safety of the Dutch factory and also issued them trading permits. For these favours the Dutch paid tributes to Chhatrapati Shivaji Maharaj. The Dutch factories at Porto Novo/Parangipettai and Tegnapattam/ Devanapattinam were unharmed by Chhatrapati Shivaji Maharaj.
