Locals helped authorities to evacuate people from nearby houses.
"The fire broke out at around 12:30 am. The accident is big...the fire is serious...and we have evacuated the houses nearby and brought all the residents out...and they are trying to bring the fire under control," said Eknath Singh Shinde.
"There are three tankers and five fire-fighting tenders...The fire can be brought under control in one and a half hours to two hours...We cannot say anything right now...the loss is high," said Vijay Vaid, Fire Officer.
No casualties were reported and the cause of fire is still to be ascertained.
Fire brigade personnel are still battling the flames to douse the fire.
More than 300 workers, who used to work in the 50 year-old factory, may now have to seek new employment.(ANI)