The fire broke out in the factory at Nowgam-Khandaypora in Awantipora, 32 kms from here, last night causing complete damage to it, a police spokesman said.
Electric short circuit was believed to have caused the blaze, he said.
Meanwhile, unidentified miscreants torched a car after it hit and injured a pedestrian at Sebdan in Budgam district of central Kashmir.
"Some persons were protesting against Power Development Department for its alleged failure to repair an electricity transformer when a private car hit and injured a pedestrian in the town," the spokesman said.
The injured pedestrian, Ghulam Mohammad Mala of Sebdan, was shifted to hospital for treatment and a hunt has been launched to nab the miscreants, he said.