The use of laser scanner 3D point cloud data and CAD models help for construction, monitoring and retrofitting of complex engineering objects in heavy industrial plants. Moreover, it reduces the time, effort, and cost required for the BIM process. Connecting the laser scanner generated point cloud data with physical world helps the users to find, analyze and modify the specific element of the model corresponding to the physical model. This paper presents a framework for point cloud acquisition, alignment of generated point cloud data with physical world model, adaptive 3D modeling and retrofitting. The workflow includes an efficient 4 in 1 approach, beginning with the alignment of pre-processed point cloud data with real world physical model using real time partial point cloud from LiDAR, next automated 3D model generation from point cloud data and virtual retrofitting of CAD models, finally an overlap of generated 3D models on the real environment from the camera-view is efficiently visualized using wearable VR (Virtual Reality) device. The method is demonstrated in a real-world setting, using the partial point cloud from LiDAR, pre-processed real-world point cloud data and CAD models of an industrial plant.