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incentives like the land at concessional rates and tax rebates to the
industries located in this industrial belt. Tri Star International soon
became a well established firm and was used as a benchmark by
others for norms in the area. Initially, TSI predominantly exported
finished leather. It was exporting seventy percent of its leather di-
rectly and the remaining indirectly. In 1976, TSI decided to enter into
Leather Garment Exports as this forward integration would result in
value addition and higher margins.
In 1978, TSI decided to explore the opportunities in shoe exports.
Since, full shoes were reserved for the small scale sector, it had to restrict
its export to the shoe uppers. Shoe uppers fetched a better margin and
provided an opportunity for value addition. The company hoped to move
from finished leather exports to finished products. This move to shoe
uppers was a step in that direction. They expected to export sixty five
percent of their shoe uppers. Their European clientele consisted of
branded shoe manufactures to whom they supplied finished leather and
shoe uppers. Soon the company started exporting to Germany, U.K.,
Italy and Belgium.
The competitive advantage enjoyed by the company was the avail-
ability of good quality leather, in-house skilled and trained manpower and
niche products like stitched on last which only TSI could offer. Although,
the company could achieve a high volume export, it continued as a job
worker for the established brands. Since, it was exporting uppers, which
was an intermediate product it could not be directly used by the end
users. Most of the shoe uppers exported by TSI were manufactured in-
house. Though, Indian products did not enjoy good brand equity, TSI
through its concerted efforts, had built a good customer base in the
European market. Thus, though the products of TSI enjoyed a good image
with the manufacturers, they did not have brand identify.
Changing Face of Shoe Industry (1988)

 Manufacturing base in the European countries was shrinking due to
the labour intensive nature of the product.

 Environmental concerns in the developed countries saw the shoe
manufacturing industry shift from developed countries to the develop-
ing countries.

 The Indian Government dereserved shoe manufacturing, allowing big
and organised players to enter the market.
TSI saw a readymade opportunity as it could convert its buyers of
shoe upper to full shoes. However, to be successful in full shoes required