Burnt bodies of the deceased were strewn around under the impact of the explosion, police said.
The unit, which makes drug intermediates, is owned by Hasita Aromatics Private Limited, a small-scale company based in Hyderabad, according to the police.
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The two other persons, who died in the explosion, were chemists. Explosion also caused chemical spill due to which four of the bodies were charred, police said.
About 15 people were working on the night shift when the incident occurred. The company employs about 30 people at the factory, according to police.
Fire services and forensic departments were pressed into service. The police have shifted the bodies for post-mortem before handing them over to their families.
There are dozens of chemical factories operating in the industrial estates located around the city of Hyderabad. Several incidents of this nature, including fire accidents being caused by the chemicals stored in factory premises were reported in the recent past.
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