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At least 16 individuals have lost their lives after a huge fire erupted at a apparel factory in Bangladesh, with emergency services cautioning that the number of victims could increase.

A total of sixteen bodies have been retrieved but were charred unrecognizable, the fire service reported.

Heartbroken relatives gathered outside the four-level factory in Mirpur, Dhaka on Tuesday in search of their dear ones still not found.

The inferno, which started at the factory around lunchtime, was put out after several hours. But an nearby chemical warehouse remained ablaze, officials reported.

Until 21:00 local time (15:00 GMT) that day, the fire at the chemical warehouse had not been fully extinguished, news sources said.

Fire department authorities have not determined which of the two buildings was the origin point.

Per bystanders, the chemical warehouse contained industrial bleaches, synthetic polymers and chemical peroxide, all of which can intensify fires. Polymer products also emits poisonous gases when combusted.

Security personnel are still attempting to find the owners of the factory and the warehouse, fire department chief the department director briefed journalists.

An investigation on whether the warehouse was operating legally is also in progress, he added.

Weeping family members waited outside the charred buildings, many of them grasping photographs of their lost relatives.

Included in the crowd is a man looking frantically for his daughter, his loved one.

"When I was informed of the fire, I rushed here. But I still cannot locate her... I just want my daughter back," he expressed to reporters.

The devastating event has another time underscored the safety concerns facing Bangladesh's garment industry, which employs numerous of workers and is a significant contributor to foreign revenue for the country.