The mishap occurred when cylinders exploded leading to a fire in the chemical manufacturing unit of Herbert Brown Pharmaceutical & Research Laboratories at Shivaji Udyog Nagar of MIDC phase-II area in Dombivili (East), District Disaster Control Officer Dinesh Kurhade said.
Three workers were killed in the explosion and about 25 others injured, a senior IPS officer told PTI.
An eyewitness said that the intensity of the blast was so much that window panes in several adjoining buildings were shattered and people were seen running helter-skelter.
Chaos prevailed in vicinity of the industrial unit where the blast occurred.
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The injured workers were rushed to various hospitals.
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Maharashtra Chief Minister Devendra Fadnavis termed it as an unfortunate incident and said he has asked the police and local authorities to speed up the rescue operations.
"Saddened to know about the unfortunate & tragic incident that took place at Dombivali," Fadnavis tweeted.
"Spoke to police officials & local authorities and asked them to speed up the relief operations," he said.
"We are constantly in touch with the local administration and we would leave no stone unturned in our efforts & relief operation," he mentioned in another tweet.
He said the cause of the explosion would be probed.
BJP MLA from Dombivili Ravindra Chavan expressed serious concern over the explosions in the MIDC and sought a permanent solution to it.
Thane District Regional Disaster Management Cell in-charge Santosh Kadam said the rescue operations were affected because of the fire in the company premises. Hence, it was not immediately known how many persons were trapped inside, he said.
At least 15 ambulances were rushed to the site, he added.