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At least 16 individuals have perished after a massive fire broke out at a apparel factory in Bangladesh, with officials warning that the fatality count could rise.

16 bodies have been recovered but were burned impossible to identify, the fire department stated.

Grief-stricken relatives gathered outside the four-storey factory in Dhaka's Mirpur area on that day in seeking their family members still missing.

The fire, which erupted at the factory around lunchtime, was brought under control after three hours. But an nearby chemical warehouse remained ablaze, emergency services said.

Until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been completely doused, media reports indicated.

Fire service officials have not established which of the two buildings was the origin point.

Based on bystanders, the chemical warehouse contained chemical bleaching agents, synthetic polymers and chemical peroxide, all of which can accelerate fires. Synthetic materials also emits toxic fumes when burned.

Security personnel are still searching for the owners of the factory and the warehouse, fire department chief the department director told the media.

An probe on whether the warehouse was functioning with proper authorization is also in progress, he added.

Crying family members stood outside the charred buildings, many of them clutching photographs of their lost relatives.

Present at the scene is a man looking frantically for his daughter, his loved one.

"When I heard about the fire, I hurried to the scene. But I still cannot locate her... I just want my loved one back," he told journalists.

The devastating event has once again emphasized the hazardous conditions plaguing Bangladesh's clothing sector, which employs numerous of workers and is a crucial provider of foreign revenue for the country.