In the industrial environment, the flow of materials is a complex and very expensive process. For reducing the expenses, it requires an effort to find favorable and flexible systems. Fork lift trucks are widely used in industries for transfer actions. The complexity of manually operated fork lift trucks shall be reduced by low cost automation. This paper deals with sensor interfaced automatic fork lifter for the effective materials flow. This fork-lift truck will identify the different pallets automatically based upon their surface color by the color sensor interfaced with it. The digital output of the color sensor varies with respect to the wavelength of the color. This output decides the selection or rejection of the pallets for loading as well as unloading anywhere. Line following technique is used for transportation between sections to avoid the complexity of conventional memory mapping technique. © 2017 IEEE.