Nagpur Municipal Corporation’s Chief Fire Officer Rajendra Uchke said the blaze erupted at 4 pm in the Indus Paper Boat Company located at Bazargaon on the Amravati Road.
The company manufactures tissue papers and toilet paper rolls.
He said the fire raged till late night as it fed on the bales of paper stored in a tin shed on the premises of the company and due to the wind.
Six fire tenders are trying to put out the flames.
Uchke said the exact cause of the fire was not known.
Sources claimed that many labourers were working in the company when the fire broke out.
The company, established in 1993, has a single fire hydrant system with a water tank and a pump.