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A minimum of 16 people have perished after a enormous fire broke out at a apparel factory in Bangladesh, with officials warning that the number of victims could climb.

Sixteen bodies have been retrieved but were incinerated impossible to identify, the fire department reported.

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

The inferno, which broke out at the factory around noon, was put out after three hours. But an adjacent chemical warehouse remained ablaze, officials said.

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

Fire service officials have not ascertained which of the two buildings ignited initially.

Based on bystanders, the chemical warehouse contained bleaching powder, plastic materials and industrial peroxide, all of which can intensify fires. Polymer products also produces hazardous smoke when ignited.

Police and military officers are still trying to locate the owners of the factory and the warehouse, emergency services head the department director informed reporters.

An inquiry on whether the warehouse was operating legally is also currently underway, he added.

Tearful family members gathered outside the fire-damaged buildings, many of them clutching photographs of their missing 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 loved one back," he expressed to reporters.

The tragic incident has yet again emphasized the hazardous conditions plaguing Bangladesh's apparel manufacturing, which provides jobs for millions of workers and is a major contributor to economic income for the South Asian economy.