Two workers, who were sleeping inside the factory, managed to escape.

The incident was reported around 3.55 a.m. from west Delhi's Nangloi area where the fire engulfed the factory being run in a three-storey building.

A DFS official said that 25 fire tenders were sent to the spot and the fire fighters managed to douse to the flames till 9 a.m., but the operation was still on.

"Fortunately, there is no loss of lives in the massive fire which gutted the entire factory where plastic materials were manufactured," said the official. "The cause of fire was yet to be ascertained."

The police said a probe has been initiated.