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No fewer than 16 individuals have died after a huge fire broke out at a apparel factory in Bangladesh, with officials cautioning that the death toll could rise.

A total of sixteen bodies have been found but were incinerated impossible to identify, the fire service stated.

Grief-stricken relatives converged outside the four-storey factory in Dhaka's Mirpur area on Tuesday in search of their family members still not found.

The fire, which started at the factory around lunchtime, was put out after three hours. But an adjacent chemical warehouse kept burning, authorities confirmed.

As late as 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, journalistic accounts said.

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

According to witnesses, the chemical warehouse housed chemical bleaching agents, plastic materials and industrial peroxide, all of which can intensify fires. Plastic also releases toxic fumes when ignited.

Security personnel are still searching for the operators of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury briefed reporters.

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

Weeping family members gathered outside the charred buildings, many of them grasping photographs of their unaccounted for relatives.

Present at the scene is a man searching desperately for his daughter, his family member.

"When I was informed of the fire, I hurried to the scene. But I still have been unable to find her... I just want my child back," he stated to reporters.

The tragic incident has once again emphasized the security issues plaguing Bangladesh's clothing sector, which engages countless of workers and is a crucial source of foreign revenue for the country.