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World Most Innovative Companies by Forbes, India bags 5 positions in top 100 ranks

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Forbes has released a list of 100 ‘The World’s Most Innovative Companies’. These 100 companies ranked on the list are based on their creative disruption, potential for innovation and investor interest. The companies also need to have seven years of financial data and $10 billion in market capitalization.

The World’s Most Innovative Companies :-

Tesla Motors tops Forbes’ sixth annual list of The World’s Most Innovative Companies (p.96) for the second consecutive year.  Salesforce retains the No. 2 spot for the second year in a row.

  • Prior to last year, Salesforce held the top spot since the list’s inception in 2011.Regeneron Pharmaceuticals follows at No. 3. Rounding out the top five is Incyte at No. 4 and Alexion Pharmaceuticals at No. 5.
  • Life science and biotechnology companies occupy half of the top ten spots on the list. Investors have seen major innovations in biotechnology and expect big things for the industry.Forbes World Most Innovative Companies
  • The World’s Most Innovative Companies list demonstrates creative disruption and how new players come in, innovate and garner the attention of investors.
  • Innovation up starts Under Armour Inc. (No.6) and Monster Beverage Corp. (No. 7) are dethroning former innovation leaders in their field like Nike and Coca Cola (No. 93).  The same could be said for Amazon (No. 11) outdistancing Walmart.
  • It is noted that nine of the top ten companies on the list are U.S based.  Investors are expecting a surge in innovation from U.S. companies.
  • The World’s Most Innovative Companies list consists of firms that investors feel are most likely to come up with the next big innovation.  Companies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses.

Top 10 List:-

1TESLA MOTORS INC.USAAutomobile Manufacturers
2SALESFORCE.COM INC.USAApplication Software
4INCYTE CORPUSABiotechnology
6UNDER ARMOUR INC.USAApparel, Accessories & Luxury Goods

Innovative Companies in India:-

At number 18, Asian Paints is the highest-ranked Indian company on the list, featuring on the list for the fourth time in a row. The other Indian companies ranked on the list are Hindustan Unilever (31), Tata Consultancy Services (66), Sun Pharmaceutical Industries (73) and Larsen & Toubro (89).

  • Asian Paints was also a part of Forbes India’s Super 50 list, a compilation of companies based on their shareholder return, sales growth and return on equity (RoE) over a period of three years. Asia’s third-largest paint company is now expanding into the home improvement and decor segment.
  • India’s largest consumer goods company Hindustan Unilever Ltd (HUL) reported weak earnings growth for the three months ended June 30, 2016. But the Sanjiv Mehta led company plans to invest Rs 1,000 crore in a new manufacturing plant within its existing factory at Doom Dooma in Assam.
  • Meanwhile,Tata Consultancy Services, also a part of the Super 50 list, posted a strong show on digital projects even as the year ahead brings rising uncertainties from Britain’s decision to leave the EU.