The incident took place yesterday at New Jaya Nepal Brick Factory in Nepal's Itahari city, police said.
Six Indian nationals killed in the incident include Saddam Hussain, 16, Rahul Miya, 12, Salim Miya, 16, from West Bengal and Gariblal Paswan, 50, Mithiles Paswan, 25 and Mustaf Miya, 16, from Bihar.
Two Nepalese, Bhagali Devi Chaudhary, 60 and Shiva Lal Chaudhary, 20, were also killed in the incident.
Of the 25 injured, condition of four is said to be critical. They are receiving treatment at BP Koirala Institute of Health Sciences in Dharan, Kathmandu Post reported.
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Those who were trapped under the debris of the chimney were evacuated with the help of excavator, police said.
Tikaram Chaudhary, a local resident, said that the upper part of the chimney destroyed by the April 25 earthquake was repaired recently.
The kiln owner had distributed sweets to celebrate the reopening of the kiln yesterday.
"We heard a loud noise as we were having sweets. There was a stampede," said Jalil Hussain, adding: "The workers sustained injuries in the stampede."