Question

What are factories ? why are they called so?

Answer 1

from the seventeenth century onwards, European trading companies from Portugal, Holland, England, France and Denmark set up trading centres in different parts of India. These trading centres were called factories, they were set up especially in the coastal areas. The factories consisted of offices and godowns. Most of them also had houses of officials and residential quarters for merchants and traders. The factories were called so because the officials of the company were called as factors.