Deputy superintendent of police Rajashakar said the blast was caused by fire in a storage room in the factory.
Two workers, Ramesh and Musalayya, suffered 60 per cent burn injuries. Ramesh was shifted to Tuni Government Hospital.
Another worker escaped with minor injuries.
Fire department officials rushed to the spot and doused the blaze.
Police have detained the owner of the factory. Further probe is on.
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