Mumbai-based L&T Infotech, a part of the Larsen &Toubro group, is evaluating acquisitions of $50-200 million (close to Rs 200-820 crore) in the US, Europe and India in a bid to boost revenues.

A M Naik, chairman and managing director, said, "We are on the lookout but our aim would be to acquire skill and intellectual property rather than get in the volumes game."

"L&T Infotech has been growing at a rate of 50 per cent annually and we expect to maintain the same," Naik said. He said the company had set a revenue target of $1 billion (about Rs 4,100 crore) by the end of 2010 compared with $287 million (about Rs 1,176 crore) in FY07.

The company plans to spend Rs 500-600 crore over three to four years to expand its Bangalore, Chennai and Mumbai centres. It also plans to increase its headcount to 20,000 by the end of 2010 from the current 7,200. To accommodate this growth, the company today inaugurated a 1,900-seat software development centre at Mhape in Navi Mumbai.

As part of a comprehensive branding exercise, L&T Infotech also launched a new logo, which retains the L&T medallion, but in a contemporary, multifaceted 3D form.

The focus of the company would be to grow its five verticals -- manufacturing, BFSI, product engineering services and energy. Currently, BFSI and energy contribute 30 per cent each to its revenues, and manufacturing 20-25 per cent.

Y M Deosthalee, chief financial officer and member, said, "IT services constitute 6 per cent of the overall L&T group. We want the number to go up to 10 per cent."

The company is certainly not looking to compete with the likes of TCS [Get Quote], Wipro [Get Quote] and Infosys [Get Quote]. Rather it wants to place itself as a niche player. Though the $5-10 million deal size remains important for the company, moving ahead it will look at $10-25 million, and in a year will target $50 million deals. The engineering services and embedded technology solutions is still a part of the parent company and has close to 1,800 employee.