The cause of the fire could not be immediately known. Eight fire tenders were pressed into service and vehicles from S.A.S. Nagar and Panchkula, too, had to summoned. It took nearly two hours to control the blaze. The fire broke around noon in the factory's first floor where polyurithene foam was manufactured and stored. Factory workers said they saw flames and immediately rushed out. "Within minutes, the foam had caught fire."

According to Chief Fire Officer Darshan Singh, the fire might have been caused by the presence of Telonin Di-Isocyanide (TDI), a highly-inflammable substance. However, while acknowledging that TDI is used in the manufacture of foam, Jain claimed that drums containing the chemical were stored far from the area where the fire broke out.

Jain also criticised the firmen for delay and unpreparedness: "The firemen arrived late and their water tankers reached even later. The firemen stood with their hoses in their hands, waiting for the tankers."

Around 7.30 p.m., smoke again began to billow from the blackened shell of the factory but the firemen who had remained on the spot immediately doused the flames.