Application of innovative methods and industry-oriented curriculum is currently the basic requirement for teaching the engineering graduates. It helps the students to attain the practical and industry specific knowledge in their gradual learning process. Innovative ways of teaching are required from foundation year of engineering curriculum so that the students can co-relate the laboratory experiments with day-to-day life and can be motivated towards research-based thought process. This case study discusses about the innovative changes in teaching methodology from theory-based laboratory experiments to next generation application-based laboratory experiments which connects students with day to day life. This research primarily deals with changes in laboratory setup, teaching methodologies and laboratory experiments and its impact on course outcome of engineering students. The feedback of students show encouraging results in improving course out comes with the help of innovative teaching methodologies.