Gopalan (M. G. Soman) is a local owner of a cane wholesale business as he purchases the canes from workers and sells them for a high price. But he is a dishonest person as he smuggles in sandalwood too, between cane business. Varuthunni (Madhu (actor)) is the chief of workers and they believe Gopalan. Varuthunni's adopted son is Ramu (Kamal Hassan) and he is in love with Sreedevi, (Seema (actress)) daughter of Narayanan, (Jose Prakash) co-worker of Varuthunni. Annamma (Sheela) is a widow and she too likes Ramu, even though he is younger to her.
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