The mishap occurred at the unit in Raramuthirakottai, when the victims were packing the chemicals in crackers, meant for temple festivals, they said.
Two workers aged 55 and 32 died on the spot, while a 45-yer-old man has been admitted to the hospital in a serious condition, police said.
The owner of the unit has been arrested, they said adding the unit, functioning in an open space, did not have a license.
The accident occurred due to exertion of too much pressure while packing the explosive chemicals, police said.
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