Modern Insulators Ltd: A Porcelain Insulator Opportunity Insulating the Power Cycle while Riding India’s Transmission Boom

Stock Opportunities Untested - but worth a good look
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CEA (Central Electricity Authority) released a report recently and it has some interesting findings -

It is noted that the technology for Composite/ Polymer Insulators is relatively new compared to that of Porcelain Insulators. While the technology for the latter is well established and mature, that for the former appears to have NOT reached the required maturity levels due to which the actual in-service life is observed to be different from (lower than) the claimed one.

Powergrid Findings : -

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M. P. Power Transmission Company Ltd Findings -

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Grid-India Findings -

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Aditya Birla Insulators Findings -

CLRI means Composite (Polymer) Long Rod Insulator

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“It is seen that replacement cost is 312 times more in case of polymer insulator over porcelain”

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Global Preference -

Vietnam & Saudi are shifting back to Ceramic.

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RTV Coating : To derive the same level of performance, Porcelain Insulators with RTV coatings may be compared with Composite Insulators.

While Porcelain Insulators have robust dielectric properties, and established performance record (long service life), and have been traditionally employed, specific issues of concern are their weight, being prone to vandalism, additional O&M requirements on account of frequent washing, and reduced performance levels in polluted and coastal areas.

Porcelain insulators with RTV coatings, they offer a proven, maintenance-free solution for high and very high pollution environments, and they are presently employed in substations in India. Given their good flashover performance, elimination of washing requirements, and comparatively long service life when properly applied, their use may be extended to that on transmission lines also by properly assessing their application for Insulators on transmission lines.

While Composite/ Polymer Insulators are lighter in weight, require less maintenance, possess excellent performance in pollution environments, and vandal-resistant, specific issues of concern are the gap between their observed life-time and claimed life-time, and additional O&M requirements on account of periodic thermal imaging (IR scanning).

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Hello @karanshah137 as this thread is evolving from sole Modern Insulators Ltd to porcelain insulators industry (especially HIIL) as a whole could you update the name of thread so that it captures the purpose, something like-

Porcelain Powerhouses: Modern Insulators & Hindusthan Insulators

or

Porcelain Insulator Opportunity: MODINSU HIIL Riding India’s Transmission Boom

or

MODINSU & HIL: Insulating the Power Cycle

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Any insights then why Modern insulators investing in AIF’s rather than doing Capex?

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They are doing capex too. I just wish it were larger.

Ultimately, it’s the management’s decision at the end of the day.

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Doing capex of 30-40 cr is for modern insulators and another 3000 sq.m for modern composite thorugh which it is expanding into polymer insulators

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Modern’s website had a lot of information, but HIIL’s website didn’t. So, used Claude to capture a few images from HIIL’s factory and map its product capabilities.

It’s a good read if you want to understand the product portfolio. Both companies have broadly similar product offerings.

HIIL Product Capability Report.pdf (1.9 MB)

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I dont understand the investment of 25 crores in an AIF fund. Won’t investing in their own business generate more returns? With insulators theme now in focus. management is not giving confidence with their actions.

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I am indebted to this thread in general and to @RocketMan in particular for bringing to my notice this porcelain insulator sector. For information of general members I would like to bring their attention to Yoy profit. Both for full year as well as last qtr, yoy gross profit has tripled. This is really incredible. So we must give credit to the management where they deserve. Overall it is crystal clear that they are running it superbly. Moreover they are getting credits for superb quality of their products, when they are competing with the Birlas. As regards expansion, we should not forget their interest free advance of 71 cr for taking over a running business. That is the best and quickest way to add capacity. And we should not expect that they employ all their funds in capacity. Taking their past performance we must allow them to run their business as they deem fit. My only wish is that they should be more investor friendly by conducting investors meet/ concall. But we can’t have it all. As we know there are many good companies not doing con calls. Nonetheless we should pursue the management for more transparency and convince them that doing so will pay rich dividends by higher PE ratio.

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Watch from 3.35 - 3.57

> https://youtu.be/vhiSKWXHWAE?si=obOwCbqu9gxkHIaT&t=215

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I was not able to find official circular as such but found this document listing these 73 components Scribd. Transcribed the pdf below-

The Central Electricity Authority (CEA), in consultation with IEEMA and major industry stakeholders such as ABB, Polycab, Sterlite, Schneider, KEC, Toshiba, Aditya Birla, Hyosung, Mehru (Quality Power), Yash High Voltage, Dong-Woo Quantum India, Destak, and Jindal Aluminium, has identified 73 critical T&D components that are currently imported due to technology gaps, limited domestic manufacturing capability, or lack of economies of scale.

Based on stakeholder inputs, 16 components have been prioritized for localization. These components span HVDC transmission, GIS, switchgear, substations, and other critical electrical infrastructure.

Prioritized Components

Component Primary Application
Subsea Cables (HVDC & HVAC) Subsea Cable
Permanent Magnet (NdFeB) for actuators MV Actuators
Oxygen Free High Conductivity Copper Rods (very high precision, flatness, ppm level <5, Dia 25-45 mm) Vacuum Interrupter
Aluminum zinc coated steel sheets (non-skin passed, non-oiled, nonchromated, 2 mm thickness) MV panel cabinets and fabrication components
HVDC valve assemblies including IGBT/Thyristors, capacitor banks and cooling system HVDC
Porcelain Hollow Insulators (33 kV to 800 kV) Circuit Breakers, Bushings, Instrument Transformers
Composite / Polymer Hollow Core Insulators (33 kV to 420 kV) Bushings, Instrument Transformers, Circuit Breakers, Cable Termination, Surge Arresters
Modular Ethernet Switches (IEC61850), PLC Controllers (FRTU) with digital I/O MV digital panels, Ring Main Units, customized distribution panels
Lightning Arrester -
Solid insulated / screened touch-proof bus bars and adaptors MV Switchgear
Insulating Spacers / Gas Partitions / Insulation Chamber / Insulation Rod GIS
Hollow Core Insulators for Gas-Air Bushings (>245 kV) Bushings
Voltage Transformers GIS
Pipes for Gas Insulated Bus Ducts and Bus Bars (ID >400 mm, spiral welded aluminium pipe) GIS
Epoxy raw material (Resin, Hardener), Liquid Silicone Rubber, Bus Bar Insulation Shrink Tubing Encapsulation components, MV Busbars, Vacuum Circuit Breakers
Motors and VCB mechanism assemblies with miniature gear train Vacuum Circuit Breakers, MV Switchgear

Remaining 57 Critical Components Identified by CEA

Power Electronics & Semiconductors

  • Electronics / Printed Circuit Boards Assembly

  • Electrolytic Capacitors

  • Electronic components and semiconductor devices (IGBT, MOSFET, Thyristors, magnetic cores, DC capacitors etc.)

  • Super Capacitor

  • Micro IC

  • High voltage high current IGBT and WBG devices (IGBT, SiC, GaN >1.2 kV)

  • High voltage and high current IGBT and SiC power modules (1 MW)

  • GaN devices and GaN-based designs

  • Modules

  • Module

GIS & Switchgear Components

  • Surge arrester for 36 kV GIS suitable for size 3 or size 2 sockets

  • Sulphur Hexafluoride (SF6)

  • Pipes for Gas Insulated Bus Ducts and Bus Bars (ID >300 mm)

  • Silicon tube for busbar insulation

  • Voltage test plug for 33 kV GIS

  • Current test plug for 33 kV GIS

  • Dummy test plug for 33 kV GIS

  • Up to 36 kV SS tank for GIS

  • Aluminium Zinc Sheet for fabrication up to 36 kV SF6-free RMU and GIS

  • Oxygen free copper rods, bars, strips and sheets with vacuum interrupter (99.995% purity)

  • Shielded solid insulated switchgear core components such as tank and bus bars

  • PIR disk for GIS application

  • Relays, copper strips, special alloys, shunts

  • Magnet Silver alloy contacts, shunt

Control, Automation & Monitoring

  • Programmable Logic Controller and modules

  • SCADA system and active/reactive power management system

  • Relay

  • Battery

  • Automation for bobbin winding, testing, inspection and relay assembly

  • Specialized magnetic core materials, tooling, winding and testing machinery

  • Zero speed sensors and controller

  • Flame ignitors, flame scanners and controller

  • Zirconia oxygen analysers

  • Online Continuous Emission Monitoring System (OCEMS)

  • Effluent Quality Monitoring System (EQMS)

  • Steam and Water Analysis System (SWAS)

  • Online dissolved gas analyzer

  • Fiber optic temperature indicators

  • LCD glass

HVDC, Transmission & Insulation Materials

  • HVDC valve assemblies and control & protection system

  • Limb reactors

  • Filters (capacitors, resistors, reactors)

  • DC measuring devices and yard equipment

  • System design and engineering for HVDC systems

  • Converter transformers

  • XLPE and SEMICON (66 kV to 220 kV)

  • Triple-layer extruder lines, drum twisters, aluminium extrusion and corrugation lines

  • Laminated insulation press board with polyester glue for UHV transformers

  • Laminated insulation press board with casein glue for UHV transformers

  • Pre-compressed press board for UHV transformers

  • Vacuum on-load tap changer

Mechanical & Auxiliary Equipment

  • Ring Main Unit motors with geared mechanism and miniature gear train

  • Lignite air lock feeder

  • Master fuel trip valve

  • Blowers (GM150S, GM35S, GM90S)

  • PA and SA fan general bearing

  • Dana

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Official circular from CEA dated 12th December 2025

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Mind-boggling results !

Doing some calculation, 140cr PAT run-rate for FY27.

Another 120% capex will take PAT to 300cr in FY28.

And this is without even considering the increased prices.

Good times.

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