Srinagar, June 19: Ice cream factory situated at Industrial Estate Shalteng in Srinagar was gutted in a fire incident on Sunday night. Reports said that fire erupted in Melody Cones factory damaging all the machinery and the building. The factory caught fire due to electric short circuit in which losses are expected to be above Rs 1 crore. The factory belongs to Mir Mushtaq Ahmad. Fire tenders and police rushed to the spot to douse the flames.