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The explosion occurred due to a heavy build-up of pressure in the boiler of Pharmopac oil at the Expogel India Ltd factory, police said, adding that nine persons died on the spot and two in hospital.
The impact of the blast was so devastating that it damaged the building and soon the whole factory caught fire.
Fire tenders from Pune and other places were rushed to the site to contain the blaze, fire brigade sources said.
Eight of those injured have been admitted to Sassoon hospital in a serious condition, the police added.
Two Jain sadhvis, who were staying in the guest house of the factory, were among the injured, they said.
The factory building collapsed as a result of the explosion.
Officials said some people may be trapped under the debris.
Fire brigade and other rescue teams have gone to the site.
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