The blast occurred due to friction while chemicals were being mixed for making fancy crackers and the fire spread instantly to other sheds in the factory.
About 120 workers were working in the factory at T.Manavacheri when the blast occurred and most of them managed to escape.
Ten sheds were destroyed in the impact of the explosion.
Irulappan (45) died on the spot, police said.
The injured were rushed to the government hospital where their condition is stated to be stable, Tahsildhar Baskaran, who visited the spot, said.