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A minimum of 16 individuals have died after a enormous fire broke out at a apparel factory in Bangladesh, with authorities warning that the fatality count could increase.

Sixteen bodies have been recovered but were incinerated beyond recognition, the fire department reported.

Grief-stricken relatives assembled outside the four-storey factory in Mirpur, Dhaka on Tuesday in seeking their dear ones still unaccounted for.

The fire, which erupted at the factory around midday, was extinguished after three hours. But an nearby chemical warehouse kept burning, officials said.

As late as 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been fully extinguished, news sources said.

Emergency responders have not ascertained which of the two buildings was the origin point.

According to witnesses, the chemical warehouse contained industrial bleaches, plastic materials and chemical peroxide, all of which can accelerate fires. Synthetic materials also emits hazardous smoke when ignited.

Law enforcement and armed forces are still searching for the operators of the factory and the warehouse, fire department chief Mohammad Tajul Islam Chowdhury briefed journalists.

An investigation on whether the warehouse was functioning with proper authorization is also currently underway, he noted.

Weeping family members waited outside the fire-damaged buildings, many of them grasping photographs of their unaccounted for relatives.

Included in the crowd is a man seeking urgently for his daughter, Farzana Akhter.

"When I heard about the fire, I hurried to the scene. But I still haven't found her... I just want my child back," he expressed to reporters.

The devastating event has yet again highlighted the hazardous conditions affecting Bangladesh's garment industry, which employs numerous of workers and is a crucial provider of economic income for the South Asian economy.