Soon after reports of the fire spread, four fire engines were rushed to the spot, along with one water tank to douse the fire, which was reportedly available from a kilometer's distance.
A fire official stated that although the reason for the fire is yet to be ascertained, the situation is under control.
While no causalities have been reported, millions of raw cloths including dozens of power loom machines, warping machines, and cloth threads were destroyed in the flame.
As part of rescue operations, nearly 50 people from a neighbouring building were evacuated after they felt uneasiness in breathing due to the fumes.
Nearly 17 such incidents of blaze have been reported in Maharashtra alone, within months after a major fire in Mumbai's Kamala Mills that killed 14 people.
On Monday, a major fire broke out at the Gokul shopping center in Mumbai's Borivali West.
Meanwhile, fire tenders are attempting to completely douse the flame in the loom factory.
Further details are awaited. (ANI)