The explosion took place around 4.30 PM at the Bhaimala village factory, 10 kms from Alibaug town, they said.
The bodies of four persons, mostly workers, were pulled out from the rubble of the crackers unit that caught fire due to the explosion.
Fire tenders have been rushed to the factory.
The deceased have not been identified yet and the injured have been shifted to the civil hospital here, police added.
Further details are awaited.
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