Ravi Varma (Rajkumar), owner of a matchbox factory is a widower and has lost his daughter in an accident. Recognizing that his honest employee Chandru is in a similar position, he decides to help Chandru financially. As Chandru attends training in the U.S., Ravi takes care of Chandru's charming daughter. On return, Chandru suggests changing the company's structure. The traditionalist Ravi, becomes infuriated. Protesting this, Chandru resigns and starts his own matchbox company and becomes the leading matchbox manufacturer.