Though no one was injured in the incident, the blaze caused a major loss to the property.
Around 50 residents of the building rushed out of their flats as initial efforts by locals to contain the spread of the fire failed, according to eye witnesses.
DCP (Central Zone) V B Kamalasan Reddy informed that no one was injured in the incident.
The fire, reportedly started at around 2 AM, was put out only in the evening, apparently due to narrow access to the spot located in the congested area.
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"Though exact cause behind the blaze is yet to be ascertained, preliminary investigations suggest electrical short circuit as a probable cause," said fire officer Mahender Reddy.
He said the matter was also investigated by local police.
"The shutter of the timber factory was closed when the incident occurred and some locals saw flames engulfing it. Due to wooden logs and other material the fire continued. Eight water tenders were pressed into service and the fire is totally extinguished," Reddy said.