Raghava, a young man, runs an eatery in his village but wishes to open a small hotel in a nearby town. He faces challenges in his quest and must overcome them to succeed.
This light-hearted comedy-drama depicts the congenial lives of the middle class in a village--their dreams, beliefs, struggles, and hopes--and the ambitions of a young man who moves to the nearby city to pursue his fond dream of owning a hotel.
Raghava runs a breakfast center in his village along with his father Kondal Rao. Raghava, who believes in his ability to make the famed Bombay chutney, dreams of starting a hotel and making it big in the nearby city, Guntur. But Kondal Rao is against any such idea. Nevertheless, Raghava with his friend Gopal secretly begins to search for a place suitable for his hotel. His uncle Nageswara Rao offers him a shed for lease but Raghava politely rejects the offer, owing to his complicated relationship with Nageshwara Rao's daughter Sandhya. The shed is located away from the city center and falls behind a giant tree but given the limited sources he has, Raghava later accepts the offer. Kondal Rao reluctantly agrees to fund with the money from his chit fund.
Meanwhile, the chit fund runner defaults on his payment, and Raghava's plans go down the drain. After a hustle-and-bustle, Kondal Rao decides to sell his land off to pay for the shed. Nageshwara Rao who gets to know that the land's value would soon increase multi-fold sees an opportunity to exchange the land for his shed at a low price. Unaware of the asset's real value, Kondal Rao proceeds with Nageshwara Rao's offer.Upon knowing that they were tricked, Kondal Rao becomes furious with Raghava.
Raghava opens his hotel in the shed but starts off with heavy losses. Raghav and Sandhya begin to spend time with each other by clearing their misunderstanding and kick-start there relationship again. Sandhya gets a match from an Assistant Engineer (AE) who works in Nageshwara Rao's office, thanks to now-increased land value. Kondal Rao who learns about his son's relation with Sandhya asks Nageshwara Rao to marry them but Nageshwara Rao favor's the AE instead. Soon after, the land's value is decreased again and the AE's family calls off the match. Nageshwara Rao, with no option left, agrees on Raghava and Sandhya's marriage, but Raghava challenges that he won't marry until the hotel becomes profitable.
Raghava begins to address the hotel's issues. He cleans up the dump yard behind his hotel and improves his Bombay chutney's recipe. Slowly his business starts to pick up. Meanwhile, the AE who is now adamant about marrying Sandhya, tells Nageshwara Rao that he is ready for the match. On their way to Nageshwara Rao's house, the AE's family boards the auto whose driver intends to marry Gautami, Gopal's love interest. He accidentally runs into Gopal and hits him. Gopal calls Raghava to take on the auto driver. During the confrontation with the auto driver, Raghava slaps the AE as he tries to stop the fight. Sandhya arrives and controls Raghava, and the AE realizes that he can no longer marry her.
Raghava and Sandhya arrive at the Nageshwara Rao's house and they convince him and later they get married. Nageshwara Rao transfers the land to Sandhya and its value is increased yet again. A new hotel with a similar name is opened to compete against the Raghava's now popular hotel and he is seen confronting it.
