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Nine Indian firms have made it into the Forbes list of the World’s 100 most innovative growth companies. New Zealand software accounting firm Xero topped the list.
The list has been made on the basis of ‘innovation premium’, which Forbes described as a measure of how much investors have bid for the stock price of a company over the value of its existing business, based on expectations of results of future innovations (new products, services and markets).
Among the Indian companies, Godrej Consumer Products leads the pack and was ranked 31st globally with an enterprise value of $4.25 billion.
Godrej Consumer Products, founded in November 2000, owns brands such as Good Knight, Cinthol, Godrej No 1, Expert and Ezee. It has an innovation premium of 58.7 per cent.
Other Indian firms on the list include ABB India, Marico, United Breweries, Siemens India, Asian Paints, Nestle India, Colgate-Palmolive India and Divi’s Labs.
ABB India is ranked 37, with an enterprise value of $2.7 billion and an innovation premium of 56.4 per cent.
Only companies that have a market value of less than $10 billion, spend at least 1 per cent of their asset base on R&D, and have seven years of public data were considered.
“Our method relies on investors’ ability to identify firms they expect to be innovative now and in the future,” Forbes said.
The list excludes energy and mining firms, whose market value is tied more to commodity prices than to innovation.
The overall list was topped by Xero, which enjoys an innovation premium of 91.7 per cent, followed by NetSuite (89 per cent), Monitise (85.6 per cent), Insulet (82.4 per cent) and DexCom (82.3 per cent).
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