Recombinant DNA technology and protein engineering are currently utilized in the cost-effective production of pharmaceutical and industrial proteins with native conformation. Escherichia coli retains its dominant position as the first choice of host for speed, simplicity and well-established production protocols. However, protein production using recombinant E. coli occasionally encounters complex purification and refolding steps. This paper introduces an efficient scheme for purification and in vitro refolding of industrially important proteins including cyclodextrin glycosyltransferase (CGTase) expressed in recombinant E. coli employing a polycationic amino acid fusion system. Fusion of polycationic amino acids to CGTase allowed purification and refolding of CGTase to be simple and efficient. A novel CGTase production strategy will be discussed by considering recent progress in protein purification and refolding techniques.