The purpose of this thesis is to use a model to optimize the heat exchanger network for process industry and to estimate the minimum cost required for the heat exchanger network without compromising the energy demand by each stream as much as possible with the help of MATLAB programming software. Here, the optimization is done without considering stream splitting and stream combining. The first phase involves with deriving a simple heat exchanger network consisting of four streams i.e... Two hot streams and two cold streams required for the heat exchanger using the traditional Pinch Analysis method. The second phase of this work deals with randomly placing the heat exchanger network between the hot and cold streams and calculating the minimum cost of the heat exchanger network using genetic coding which is nothing but thousands of randomly created heat exchangers which are evolved over series of population.