The fire engulfed the warehouse of the factory in Maruali area, following which seven fire tenders were pressed into service.
"It could have been a major tragedy. But with the timely intervention of firefighters, the blaze could not spread to other nearby establishments... It took over six hours to bring the situation under control," police inspector Shabbir Ahmad said in Varanasi, some 300 km from the Uttar Pradesh capital Lucknow.
A few workers, who were trapped inside the warehouse, were rescued by firefighters with the assistance of locals. In the process, two people received minor injuries, police said.
"Though the exact loss is yet to be ascertained, initially it has been pegged at around Rs.20-25 lakhs," said Ahmad.
An electric short-circuit is believed to be the reason behind the incident.
Varanasi: Goods worth around Rs 25 lakh were gutted after a massive fire broke out in a warehouse of a paper factory here early Tuesday, police said. Two people received minor injuries.
First Published: Tuesday, April 26, 2011, 14:21