Line following automated robots is extensively used in industries for smooth running of production. This paper presents a simple and effective solution for path tracking problem for a wheeled automated mobile robot which can be used for material handling in industries. A PID controller has been used for controlling the robot which is capable of moving safely by smooth track-keeping in partially structured environment without any collision with static or moving objects. The purpose of the project is to build a mobile robot which will provide fast, smooth, accurate and safe movement in any given line or track. A straight or wavy line would be simple to follow whereas aT-junction, 90 degree bends, acute angle bends and grid junctions would be difficult to navigate through. This is due to the physical kinematics constraints which are limited to motor response, position and turning radius of the robot. A line sensor configuration has been proposed to improve the navigation reliability of the mobile robot which uses differential drive system. A dynamic algorithm has been developed for detecting and following a specified line which ensures the reliable and safe movement of the robot.