In the present-day scenario, industries face severe problems associated with the power quality. Harmonic pollution causes equipment overheating, transformer overheating, maloperation of control devices and excessive neutral current. An industry located near Mumbai has been taken as a case study for this paper. Detailed power and harmonic analysis was carried out in this industry. In this paper, a cost-effective solution for improvement in power quality has been proposed. The proposed solution is for power factor (PF) improvement using thyristor-switched detuned automatic power factor correction (APFC) systems and passive harmonic filter (HF). Design, control and selection of proposed solution and hardware have been discussed. The designed system is compared for economic aspect with active harmonic filter. A check for the compliance with power quality standard IEEE-519 is also carried out.