There were no injuries or casualty in the mishap, they said.
The blaze started in the agro-chemical factory at around 11.15 AM and the flames spread rapidly.
The workers immediately noticed the fire and informed the police.
Seven fire engines were pressed into service to control the blaze, according to Bhongir Deputy Superintendent of Police (DSP) S Srinivas.
The fire has been brought under control, however, it will take at least another 2-3 hours to fully extinguish it, he said.
The police along with fire personnel have evacuated the workers and local residents including school children from a building in the factory's vicinity.
Bibinagar police were investigating further.
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