Kundapur: Major fire engulfed a chemical factory functioning at Koteshwar here on Wednesday afternoon, burning down property and valuables running into several lakhs.

The fire mishap occurred in Damodar Chemical Industry, owned by Yogesh Bhat Kundapur.

The industry producing oil for brake liner of vehicles first witnessed fire in the oil tank itself. Over 40 tonnes of oil were stocked up in the factory.

Fire personnel have been pressed into action and the fire was brought under control after two-hour long operation. The exact cause for the fire is not known while

short circuit is suspected to be the reason.

Investigations are on.