Smoke and flames could be seen emanating from the factory from a distance soon after the incident was reported in the afternoon, fire department officials said.
Eight to 10 fire tenders of Ludhiana Municipal Corporation were pressed into service to douse the flames, they said.
No loss of life was reported, said Surjit Singh, a fire department official.
However, the goods and machinery in the factory were badly damaged, he said.
Notably, today's incident comes barely three days since three labourers were burnt alive in a fire that broke out at a cotton spinning mill situated in the Industrial Area here.
A year ago, three labourers were charred to death in a fire that broke out in a garment factory on Bajra road.