Scoring 59.8% on the Forbes Innovation Index, Asian paints has secured 18th position in the sixth Forbes’ World’s Most Innovative Companies list of 2016.

This makes Asian Paints India’s most innovative company for 2016.  Only four other Indian companies including Hindustan Lever and Tata Consultanty Services were among the top 100 world list.

Scoring is based on investors perception of which company they feel will come up with the next best innovation. According to Forbes release, the World’s Most Innovative Companies list were ranked on the basis of creative disruption and how new players come in, innovate and garner the attention of investors.

As per a release from Forbes, “World’s Most Innovative Companies list demonstrates creative disruption and how new players come in, innovate and garner the attention of investors. Innovation upstarts 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”.

A nominated firm in the index needs seven years of being in business alongwith a market capitalisation of $10Billion.  The innovation premium, which is the ranking base, is the difference between the market cap and NPV of cash flows from existing businesses, which is calculated using HOLT, a proprietary algorithm from Credit Suisse.

Source: The Financial Express