One unit of Sardar Patel Renewable Energy Research Institute (SPRERI's) 1.25 GJ h−1 capacity open core down draft gasifier burner system, suitable for thermal application was installed at M/s Dinesh Pharmaceutical Pvt. Ltd., Nandesari, for steam generation. Producer gas burner was used in dual fuel mode (60% LDO (light diesel oil)+40% producer gas). Gasifier consumed 78–80 kg h−1 of wood, and replaced 40% (20 l h−1) LDO. The system was tested for a cumulative period of 600 h using sawmill woody waste as feedstock in test runs of 15–18 h. Financial analysis of the gasifier system showed that user could save about Rs. 221.8 per hour by using dual fuel (60% LDO+40% producer gas) for steam generation. Economic analysis of the system tested in the field indicated the viability of the gasifier-based operation.