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At least 16 people have lost their lives after a massive fire erupted at a apparel factory in Bangladesh, with officials stating that the death toll could increase.

Sixteen bodies have been found but were incinerated impossible to identify, the firefighters said.

Heartbroken relatives gathered outside the four-storey factory in the Mirpur district of Dhaka on Tuesday in seeking their dear ones still missing.

The blaze, which erupted at the factory around midday, was brought under control after three hours. But an adjacent chemical warehouse remained ablaze, emergency services confirmed.

Until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, news sources reported.

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

According to bystanders, the chemical warehouse contained chemical bleaching agents, synthetic polymers and chemical peroxide, all of which can accelerate fires. Synthetic materials also produces toxic fumes when combusted.

Security personnel are still searching for the proprietors of the factory and the warehouse, fire service director the fire service official briefed the media.

An probe on whether the warehouse was running according to regulations is also in progress, he mentioned.

Tearful family members waited outside the fire-damaged buildings, many of them clutching photographs of their lost relatives.

Present at the scene is a man looking frantically for his daughter, his loved one.

"When I learned of the fire, I came running. But I still haven't found her... I just want my child back," he expressed to reporters.

The devastating event has once again highlighted the hazardous conditions plaguing Bangladesh's apparel manufacturing, which provides jobs for numerous of workers and is a major source of economic income for the South Asian economy.