The unit at Elathur Pathy village near Gobichettipalayam was manufacturing small and low decibel firecrackers usually used for temple festivals, they said.
The accident occurred when some fireworks stored inside suddenly exploded, triggering a fire.
Ten persons, including the unit owner and his wife, sustained burns, they added.
Six persons were admitted to Gobichettipalayam government hospital, while four, who sustained serious burn injuries, were referred to the Coimbatore Medical College Hospital for further treatment, police said.
Fire personnel doused the blaze which damaged a portion of the unit.
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