Shera Yadav (22) posted at the Cement Corporation of India unit at Akaltara town shot Ajay Tiwari (25) dead with his 12 bore rifle following an altercation between the duo at the factory premises, they told PTI/Bhasha.
Yadav and Tiwari are employees of a private security agency.
Police said other security guards shifted Tiwari to a hospital where he was declared dead.
According to police, Yadav hails from Bihar and Tiwari from Uttar Pradesh.
A search has been launched for Yadav who fled the spot after the incident, they said.