The explosion took place around 2 am in an aluminium moulding factory's warehouse that led to the collapse of a compound wall, an official of the Brihanmumbai Municipal Corporation (BMC) Disaster Control unit said.
The wall crashed onto some tenements adjacent to the factory premises, killing five people and injuring three others.
Those killed have been identified as Savka Patel (55), Bharati (32), Ganesh Patel (25), Manisha(15) and Neha (13).
The injured, identified as Amit Harijan (27), Bhaiyalal (25) and Mangesh Patel (30), have been admitted to the Rajawadi Hospital in Ghatkopar.
The anti-terrorist and bomb squads were rushed to the explosion site which is close the Chhatrapati Shivaji International Airport.