However, a major tragedy was averted as most of the industrial units were shut when the mishap occurred.
District Collector Abhijit Bhangar said as of now no casualties were reported in the incident.
The blaze broke out in Aroma chemical company at around 4:30 PM and soon engulfed the nearby units, some of them plastic-manufacturing factories, gutting them totally.
The BIDCO industrial area is located in the city near the district collectorate.
According to an eye-witness, the flames could be seen from a distance of around 5 to 6 kms.
According to the collector, the blaze spread to around 20-25 huts located in the back side of the industrial area.
"The huts were gutted in fire. The cattle tied in shed were promptly released," he said, adding that prima facie some cattle were injured.
The residents of Bharwad pada locality abutting the industrial area ran for their lives as their houses were also affected due to blaze.
The fire engines from municipal councils of Palghar, Virar-Vasai, Tarapur MIDC rushed to the spot and brought the blaze under control after over two hours.
Palghar deputy Superintendent of Police, Shivaji Dhabvat, along with the police personnel, was present at the spot.
Last month, 12 people were killed in a massive explosion in a chemical plant at Dombivli in adjoining Thane district.
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