This paper proposes an automatic power factor correction for variable inductive loads, most dominantly induction motors (IM) utilizing the Programmable Logic Controllers (PLC). This hardware implementation of a 3Ø Inductive load system focuses on the automatic correction of power factor using PLC. With the help of PLC, different performance parameters current level, real power, and inductive power are obtained and logged in the PC. Using PLC program, according to the control strategy to obtain a pre-specified power factor a set of capacitors sized in a binary rate will be switched on or off with the help of switching relays and contactors. This PLC control strategy relies on a lookup table which is prepared based on two input parameters - peak current and power factor, at a constant voltage. From these parameters, PLC will calculate the reactive power of the system and accordingly the right sequence of the capacitors are switched on in order to compensate for reactive power.