The annual ‘World’s 100 Most Innovative Companies’ list was released on 20th August, 2014 by Forbes. Out of which 5 Indian companies made their way in the list. The list was based on companies that investors think are likely to generate big and new growth ideas. 

While California- based cloud computing company Salesforce bagged the first place for the fourth year in a row. With a market cap of $ 35.87 billion, Salesforce had an innovation premium of 75.9%.  Indian companies in the list were:

Hindustan Unilever (14)

 Hindustan Unilever, a consumer goods Mumbai-based company recorded an innovation premium of 54.7% . 

Tata Consultancy Services (57)

The major IT service company TCS’s recorded an innovation premium of 39.58%. The company had a market capital of $71.25 billion as of May 2014.

Larsen & Turbo (58)

The infrastructure company spotted the 58th spot with an innovation premium of  39.4% and a market capital of $ 19.81 billion. 

Sun Pharma (65)

The pharma company, with a market capital of $19.88 billion recorded it’s innovation premium of 38.34%

Bajaj Auto (96)

Bajaj Auto’s innovation premium reached 31.73%. It registered a market capital of $10 billion.

You might be wondering as to what is innovation premium. Breaking your curiosity, As per Forbes, it is  a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future.

-Vatsal Doshi