Police and fire department officials said that 8 to 10 workers inside the factory fell unconscious and some were hospitalised.
Seven fire tenders had to be pressed into service to douse the flames, they said.
The cause of the fire was not yet known, Station Fire Officer, Baljinder Singh said.
He said that fire department officials were trying to clear the raw material stored in the factory used for manufacturing incense.
Acting SHO of Sector 31 police station, Dalbir, said "many workers complained of suffocation as thick smoke was billowing out of the factory".
"No case has been registered so far in connection with the fire, whose cause is not yet known. We will wait for the report of the fire department. If any violation is found, then we will proceed as per law," he said.
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