A thick cloud of black smoke engulfed the area even as fire and police department personnel swung into action to douse the blaze.
Telangana Home Minister Home Minister Nayani Narasimha Reddy, who visited the spot told reporters that the fire broke out in a mechanical workshop and spread to nearby shops and godowns.
"The fire started at around 4 pm at a workshop and spread to adjoining shops storing paints and thinners. There were lot of old tyres. The cause of the fire will be known only after an inquiry is conducted into the matter," Additional police commissioner (Law and Order) Anjani Kumar told PTI.
"It is still not clear how the fire started. Some say it is due to a electrical short-circuit, while others say that the fire broke out after explosion of some gas cylinders at the workshop. The matter is under investigation," Kumar said.
Hyderabad Police Commissioner M Mahendar Reddy, other senior police and fire department officials supervised the situation.