Kotak Mahindra Asset Management Company Limited launches Kotak Nifty Chemicals ETF
Hyderabad, 24th October, 2025: Kotak Mahindra Asset Management Company Ltd. (“KMAMC” / “Kotak Mutual Fund”) is pleased to announce the launch of Kotak Nifty Chemicals ETF, an open-ended scheme replicating/tracking the Nifty Chemicals Index. The scheme opened for public subscription on October 23, 2025, and will close on November 6, 2025.
The Nifty Chemicals index tracks the performance of the top 20 stocks from the chemicals sector, selected based on a 6-month average free-float market capitalization from the Nifty 500 Index, with a preference to stocks available for trading in the derivatives segment at NSE. The weight of each stock in the index is based on its free-float market capitalization. The index is reconstituted semi-annually and rebalanced quarterly.
The Indian chemical industry is 6th largest producer globally, with over 80,0001 commercial products. The sector is witnessing robust growth driven by rising domestic demand, global supply chain shifts, and strong policy support. India’s competitive advantages in labour cost, R&D capabilities, and government incentives have positioned it as a preferred destination for global chemical manufacturing and investment.
Nilesh Shah, Managing Director, Kotak Mahindra AMC, commented on the launch: “India’s chemical sector is at a pivotal stage, driven by strong domestic demand, global supply chain realignment, and supportive government policies. As per NITI Aayog report, the Indian chemical sector is expected to reach USD 1 trillion by 2040. With the launch of the Kotak Nifty Chemicals ETF, we aim to provide investors with a transparent and cost-effective way to participate in this growth story”
Devender Singhal, Executive Vice President & Fund Manager, Kotak Mahindra AMC added; “India is expected to account for more than 20% of the incremental global consumption for chemicals over next two decades2. Factors such as China +1, India’s strong R&D and technological capabilities, and continued government support would also drive demand. With the chemical sector currently trading at long-term average valuations, investors have a potential entry point to participate in this growth story with the Kotak Nifty Chemicals ETF.”
Source:
- Source: IBEF Report, As per latest data available
- Source: Mckinsey Report, March 2023