Background:
The Dutch East India Company, also known as the Vereenigde Oost-Indische Compagnie (VOC), was a prominent Dutch trading company established in the early 17th century. The VOC sought to establish a presence in India to tap into the lucrative spice trade and secure a share of the Indian Ocean trade routes. They established several factories along the coast of India, with Pulicat being one of them.

Explanation:
The Dutch established their first factory in India at Pulicat. Here's a detailed explanation of why Pulicat was chosen as the location for their first factory:

1. Geographical Location: Pulicat is located on the Coromandel Coast of South India, near the mouth of the Pulicat Lake. It was strategically positioned for trade as it provided easy access to both the Bay of Bengal and the Indian Ocean.

2. Existing Trade: Pulicat was already an established trading center, attracting merchants from various parts of India and abroad. The Dutch recognized the potential of this bustling trade hub and aimed to establish their presence to tap into the existing commerce.

3. Spice Trade: The Dutch were particularly interested in the spice trade, which was highly profitable during that period. Pulicat was strategically located near regions known for producing valuable spices such as pepper, cardamom, and cinnamon. By setting up a factory in Pulicat, the Dutch could directly engage in the spice trade and reduce reliance on intermediaries.

4. Access to Resources: Pulicat was surrounded by fertile agricultural lands and had access to abundant freshwater resources from the Pulicat Lake. This made it an ideal location for establishing a factory that would require resources for sustenance and trade.

5. Strategic Advantage: Pulicat's proximity to other prominent trading centers such as Masulipatnam and Madras (now Chennai) provided the Dutch with a strategic advantage. They could establish trade links with these neighboring regions and expand their influence along the Coromandel Coast.

6. Establishment of a Trading Post: The Dutch East India Company aimed to establish trading posts or factories in various parts of the world to facilitate trade and maintain control over the supply chain. Pulicat provided a suitable location for the Dutch to set up their factory and carry out their trading activities.

In conclusion, the Dutch established their first factory in India at Pulicat because of its strategic location, existing trade networks, proximity to spice-producing regions, access to resources, and its potential for expansion along the Coromandel Coast.