Heat exchangers are equipment used to transfer heat from a high temperature fluid to a low temperature fluid without direct contact. Usually, the heat exchangers used for industrial applications are large in size. The objective of this study is to reduce the size of the heat exchanger and increasing the effectiveness by using suitable materials. The present study is carried out on a concentric tube heat exchanger with rectangular fins arranged around the circumference of the tube. The initial simulation is carried out to find the best material among aluminum bronze and Al 6061. The study is further continued to find the best inlet conditions by varying the mass flow rate from 0.25 kg/s to 3 kg/s in 0.25 kg/s increments and inlet temperature from 80°C to 90°C in 5°C increments. Cold water flow conditions, such as mass flow rate of 1.5 kg/s and inlet temperature of 30°C, are constant throughout the study. The heat exchanger was modeled in SOLIDWORKS 2020. The flow simulation and thermal analysis were carried out in SOLIDWORKS Flow Simulation 2020. The simulation results and the actual prototype results showed a variation of 4.2%.