1. Mysore had grown in a powerful state under Haider Ali and Hyder Ali built a strong arm with the help of the French. Haidar Ali decided to force the British away from South India.
2. The British signed the Subsidiary Alliance with the Nizam of Hyderabad for protecting the Nizam from Hyder Ali. This gave the British control over the Northern Sarkars or Districts.
3. The Nizam of Hyderabad + the Marathas + the English allied together against Hyder Ali.
4. Haider Ali followed a unique strategy and without giving them time, suddenly appeared before the gates of Madras. Thus the English were forced to conclude the war with the treaty of Madras in 1769.
5. According to this treaty both would help each other in case of a foreign attack (defensive and offensive alliance).