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A minimum of 16 individuals have lost their lives after a enormous fire erupted at a apparel factory in Bangladesh, with officials warning that the death toll could climb.

A total of sixteen bodies have been retrieved but were burned unrecognizable, the fire department stated.

Distraught relatives gathered outside the multi-story factory in Mirpur, Dhaka on that day in search of their dear ones still missing.

The inferno, which started at the factory around midday, was extinguished after multiple hours. But an adjacent chemical warehouse remained ablaze, officials confirmed.

Up until 21:00 local time (15:00 GMT) on Tuesday, the fire at the chemical warehouse had not been completely doused, media reports said.

Fire department authorities have not determined which of the two buildings caught fire first.

According to 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 ignited.

Police and military officers are still attempting to find the proprietors of the factory and the warehouse, emergency services head Mohammad Tajul Islam Chowdhury informed the media.

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

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

Present at the scene is a man searching desperately for his daughter, his loved one.

"When I was informed of the fire, I rushed here. 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 underscored the security issues facing Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a significant contributor to export earnings for the country.