Lectra: Selling CAD / CAM Equipment

Former Sales Director at Lectra

Why is this interview interesting?

  • Many companies have tried to replicate Lectra's machines but failed because of the technological complexity
  • Lectra’s poor service quality is creating a potential opportunity for competitors
  • Lectra changed the pricing of spare parts and consumables which leads to 2x annual TCO for a machine on saas vs perpetual license
  • Eastman could pose a threat to Lectra in the future

Lectra

Why is this company interesting?

Lectra is a French-listed, family-owned business that manufactures and sells CAD, CAM, and PLM equipment for the fashion, auto, and furniture industries. The company has over 50 years of experience designing and building technology for brands and suppliers to design and produce products more efficiently.

Lectra sells the hardware with software and maintenance contracts which leads to 66% of revenue being recurring each year. The company is currently in a transition to shift from perpetual licenses to software-as-a-service.

Lectra is owned and operated by Daniel Harari, who turned around the company with his brother in the 1970’s. For the last 20 years, the company has compounded FCF per share at over 8% per year at incremental ROIC comfortably over 20%.

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Executive Bio

Imed Benammar

Former Sales Director at Lectra

Imed has over 20 years experience in industrial equipment and software sales and has spent over 5 years at both Dassault Systems and Lectra. He is the Former Sales Director at Lectra where he was responsible for pre and post-sales of Lectra equipment to brand owners and suppliers throughout Europe and the Middle East. Imed also moved from Lectra to Morgan Tecnica, an upstart competitor to Lectra.Read more

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Interview Transcript

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Lectra: Selling CAD / CAM Equipment(February 17, 2022)

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