Groww launches Nifty Cement ETF, enabling investors to track India's cement sector

Groww Mutual Fund has launched the Groww Nifty Cement ETF, an open-ended exchange-traded fund (ETF) that aims to provide investors with exposure to India's listed cement companies by tracking the Nifty Cement Index – Total Return Index (TRI). The new fund offer (NFO) opened on July 8 and will remain available for subscription until July 22.

The ETF seeks to replicate the performance of the Nifty Cement Index, subject to tracking error, offering investors a low-cost and rules-based investment avenue to participate in the country's expanding cement industry, which is expected to benefit from sustained infrastructure development and urbanisation.

The launch comes at a time when India's cement sector is witnessing robust growth, driven by government spending on roads, housing and other infrastructure projects. According to industry estimates cited by the fund house, India produced 443.2 million tonnes of cement during the April-February period of FY26, reflecting a 9.2% year-on-year increase.

The Union Budget for 2026-27 has earmarked ₹12.2 lakh crore for public capital expenditure, including ₹3.09 lakh crore for the Ministry of Road Transport and Highways, providing a strong demand outlook for construction materials such as cement.

Groww Mutual Fund said India is the world's second-largest cement producer, accounting for around 11% of global output. However, per capita cement consumption remains at about 313 kg, significantly below the global average of 470-520 kg, suggesting room for long-term demand growth as urbanisation and infrastructure creation continue.

The fund house also highlighted that the domestic cement industry is expected to add 270-275 million tonnes of production capacity over the next five years, while industry consolidation has strengthened the position of leading players, which together account for nearly 60% of installed capacity.

The Nifty Cement Index comprises 20 listed companies selected from the Nifty Total Market Index based on free-float market capitalisation and other eligibility criteria. As of June 22, 2026, its largest constituents included Grasim Industries, Shree Cement, UltraTech Cement, Ambuja Cements and JK Cement.

The scheme requires a minimum investment of ₹500 and carries no exit load. It will be managed by Nikhil Satam, Aakash Chauhan and Shashi Kumar. As of June 30, 2026, the index was trading at a price-to-earnings multiple of 17.54, below both its five-year average of 19.20 and 10-year average of 24.73, indicating relatively attractive valuations.