Exploring capital expenditure planning process & tracking in Robi Axiata Limited

Abstract

Robi Axiata is the second largest mobile phone operator in Bangladesh in terms of revenue and over time it is steadily increasing the number of its subscribers. In order to do so, Robi is consistently increasing investment to get an ideal return from invested capital. In which areas investment should be made requires great carefulness. Based on the analysis Integrated Planning Finance or Oikotan team with the collaboration of Market Operation and Technology team deploy Capital Expenditures (CAPEX) for Robi Axiata Limited. Before the formation of Oikotan, capex distribution process was different from now which can be found in this report briefly. Oikotan is formed as control policy. Under this policy Market Operation or Technology solely cannot make any decision to set up any BTS site or do capital expenditure without the valuation done by IPF or Oikotan team. Valuations include Net Present Value (NPV), Internal Rate of Return (IRR) and qualitative issues (strategic, operational continuity) etc. which was not done earlier by finance team. Therefore, CAPEX deployed in some areas, where no profit being accumulated and the CAPEX was being tied down in loss generating project. My experience of being intern in Oikotan or IPF team enlightened me as how with small units of employee hard tasks can be solved wisely. This has also taught me that a right decision can be really beneficial for a company’s survival in the market as a successful brand. After the changes made on capex distribution system everything is tracked properly. From the very beginning of budget requirement generation to business plan or case execution Oikotan plays the most vital role to ensure all the things are going through the right track with efficient tracking.