Data sets to which clustering is applied may be homogeneous (numerical or categorical) or heterogeneous (numerical and categorical) in nature. Handling homogeneous data is easier than heterogeneous data. We propose a novel technique for identifying initial seeds for heterogeneous data clustering, through the introduction of a unique distance measure where the distance of the numerical attributes is scaled such that it is comparable to that of categorical attributes. The proposed initial seed selection algorithm ensures selection of initial seed points from different clusters of the clustering solution which are then given as input to the modified K-means clustering algorithm along with the data set. This technique is independent of any user-defined parameter and thus can be easily applied to clusterable data sets with mixed attributes. We have also modified the K-means clustering algorithm to handle mixed attributes by incorporating our novel distance measure to handle numerical data and assigned the value one or zero when categorical data is dissimilar or similar. Finally, a comparison has been made with existing algorithms to bring out the significance of our approach. We also perform a statistical test to evaluate the statistical significance of our proposed technique. © 2019, King Fahd University of Petroleum & Minerals.