In 1638, a rival English trading body, the Courteen Association, established a factory at Uttara Kannada (actually the village named Kadwad, situated eastwards on the banks of the Kali river). It was a trade port frequented by traders from Arabia and Africa. Baitkhol port (the current civil port of Uttara Kannada) was known for its natural harbour. The name Baithkhol is Arabic term, Bait-e-kol, meaning bay of safety. Muslin was the chief commodity purchased but Uttara Kannada was also a source for pepper, cardamom, cassia and coarse blue cotton cloth. Situated on India's west coast, 50 miles south-east of Goa, Uttara Kannada was noted for its safe harbour. In 1649, the Courteen Association united with the British East India Company and Uttara Kannada became a company factory.
