He told the court how he was approached by Reddy, a family friend, who asked him if he wanted to do a job.
"All he said was he had a friend who was looking for someone to burn down his factory," Neru said.
The witness said he thought about the proposition for a couple of days before agreeing to a $500 cash fee.
According to Neru, he was then driven to the factory on Bruce McLaren Rd and introduced to Naiker, who pointed out a large pile of cardboard on the ground floor that he was instructed to set alight.
The pair then went upstairs to the offices where the man was told to smash up the computers and other electronics to "make it look like a robbery".
Before he left, Neru said he was told to help himself to items from the shop adjoining the factory, from which he took "heaps of food".
The witness told the court on the night of November 15 he dressed in black with socks on his hands, to avoid finger prints, and took a golf club to break into the building.
After stealing more food from the shop, he followed the plan as he said had been outlined.
Fire crews from the Henderson station, just down the road, were soon on the scene to douse the blaze.
"I feel horrible about it. It shouldn't have happened from the start. I'd take it all back if I could but it's too late," Neru told the jury.
It is alleged Naiker initiated an insurance claim 11 days after the fire.
Insurance company officials at court confirmed the claim was for more than $1 million.
The trial is expected to last all week.
