The British used to acquire large plots of land for their factories. These plots were used to build warehouses, residential quarters, and offices. The British needed a permanent place to store the goods at low prices. It was required of them to stay in India for a period of 9 to 13 months to carry out trading transactions. Hence they decided to build ‘Factories’ or ‘emporiums’ in India. The staff of these factories was called ‘factors’.
