Sambayya, Chiranjeevi, a humble cobbler, is devoted to raising his late sister's son, Chinna (played by Arjun/Sirish), while also supporting the education of the orphaned Sarada, Sumalatha, on whom he has a crush and hopes to marry someday.
However, circumstances take a different turn when Sarada marries Bhaskar, Sarvadaman D. Banerjee. Ganga, Vijayashanti, who has long harboured feelings for Sambayya, undergoes a tubectomy to prove her commitment to being a devoted mother to Chinna, ensuring that her focus remains solely on their family. Meanwhile, Govind, Charan Raj, Sambayya's criminal brother-in-law who is Chinna's biological father, tries to steal Chinna from Sambayya. When Govind sets Sambayya's shop on fire, they get into a fight after which Govind is sentenced to prison for 9 years. Sambayya and Ganga marry and work together through hardships, starting a shoe business which flourishes and they become wealthy.
A few years later, Chinna grows up developing an ego due to Sambayya's riches. Sambayya teaches him to be humble. In one such situation, when Chinna abuses a young shoe polisher and spoils his clothes, Sambayya makes Chinna polish shoes on the street and earn money every day until he earns enough to buy the kid new clothes. Meanwhile, Sarada and Bhaskar have a tense marriage with frequent fights. Sarada scolds Bhaskar about his bad habits, for not being able to earn, and taking advantage of Sambayya for money. When Sambayya learns of Sarada and Bhaskar's troubles, he takes a distressed Sarada to his home. Meanwhile, Govind is released from prison and poisons Bhaskar's mind by divulging that Sambayya took Sarada home and that he used to love her. During a celebration at Sambayya's house, Bhaskar creates a scene and claims that Sambayya and Sarada are having an affair. Sambayya reforms Bhaskar and gives him a job in his company. Govind joins forces with Ganga's unscrupulous father and poisons Chinna's mind by misinterpreting Sambayya's disciplinary actions as brutality. Chinna begins to despise Sambayya.
Govind files for custody of Chinna. In court, the decision of custody is left to Chinna and he chooses to be with Govind, but wants Ganga as well. Affirming that he took Chinna just to extort Sambayya for his demands, Govind hands a cassette tape to Ganga, who watches it with the family. The tape shows Govind having Chinna get addicted to all vices. Govind asks for Sambayya's wealth in exchange for Chinna. When Sambayya signs off all his properties to Govind, Govind kicks Chinna out and Sambayya takes him home.
During Chinna's birthday celebration, Sambayya plays the same cassette tape, after which all the guests feel disgusted and leave. Sarada explains to a disheartened Chinna that Sambayya disciplined him because he is his well-wisher while Govind taught him bad habits to ruin him. Upon discovering that Govind is taking possession of all of Sambayya's assets, Bhaskar & Sarada along with the labour force revolt and overthrow Govind. Govind comes to his senses and reforms, giving Sambayya back his properties. However, Sambayya quits and returns to the streets. Chinna realises the truth and despises Govind. Sambayya resumes his earlier profession as a cobbler and is pleasantly surprised to see that Chinna is doing the same across the street, indicating that he has reformed and learned the value of hard work.
