The incident took place early this morning.
The Ludhiana Municipal Corporation rushed 12 fire tenders to the spot to control the blaze. It took them four hours to douse the flames, he said.
The three-storeyed building and the yarn were gutted in the fire, Rishi Pal, Additional Commissioner Ludhiana Municipal Corporation, said.
There were no reports of any causality or injury to any worker, he said.