The victims, aged between 40-45 years, hailed from Bihar and were working in the mill, DCP Dhruman Nimbley said.
Four others, including two women, received serious burn injuries in the incident, he said, adding that they have been rushed to a hospital.
Surjit Singh, Fire Officer, Ludhiana Municipal Corporation, said the labourers were living along with their families on the upper storey of the mill.
"We managed to save seven persons," he said.
A total of 50 fire tenders were used to control the flames.
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