Panic gripped employees of an oil factory on Budwel road in Katedan on Friday after an electrical transformer caught fire. However, none was injured.

Chandulal Baradari fire officer B. Sudershan Reddy said flames could have erupted from the transformer due to oil leakage. Two fire tenders from Chandulal Baradari and Malakpet rushed to the spot and the flames were doused within an hour. Necessary steps were taken to prevent flames from spreading to the factory, he said, adding that exact loss of property was yet to be ascertained.