The fire that broke out in the godown of the company, a subsidiary of ITC, completely turned 40 truckloads of cigarette to ashes, according to the police.
The exact cause of the fire is not yet known, they said.
Scores of security personnel from Nepal Army and Nepal Police were dispatched to the factory to bring the fire under control.
The fire broke out at 1.30 am today, sources said.
The security guards of the factory were asleep when the fire broke out, the police said.
Police Inspector Ganga Thapa said that the team is facing difficulties in putting off the fire since it started inside a cigarette warehouse.
However, 75 per cent of fire has been brought under control and efforts to control it are underway, he added.
All the papers, tobacco and record files were destroyed in the fire.
