Bharat Electronics Ltd (BEL) plans to focus more on its core competencies, research, and development. All non-core areas are to be outsourced to Indian industries including MSMEs. "At present about 40 percent of input materials are sourced from Indian private industries through effective and robust vendor development programme," SK Sharma, CMD, said. "In order to increase local sourcing substantially, the company has implemented a long-term outsourcing and indigenisation policy and nodal officers for outsourcing and vendor development have been nominated," he added. To encourage MSMEs, the company annually adds around 800 new indigenous vendors and also offers SOP for the use of company's test facilities by private entities including MSMEs. Sharma said, "Procurement from MSMEs has been increased to 20 per cent during 2015-16 as against 8 per cent during 2014-15." To strengthen its core competencies in seven segments, the company has adopted a three-year R&D plan for 2016-19. "The plan is to take stock of the company's core competency, technology forecast and to build products and services to serve customers," said Ajit T Kalghatgi Director-R&D, BEL.