The film opens when Madhumati or "Madhu" (Bhoomika Chawla) and Siddartha Roy or "Siddhu" (Pawan Kalyan) are born. Madhu's family is based in Konaseema in Andhra Pradesh and Sidhu's family is from Kolkota (he has a Telugu father and Bengali mother). As babies, Madhu and Siddhu meet in a shopping complex.
Madhu and her father love each other dearly. Madhu's father wants her daughter to get married and wanted to keep his son-in-law with them and so that his daughter will not leave him. However, her groom elopes with his girlfriend, apologizing to Madhu that he did not want to ruin another girl's life.
Siddhu receives a visa for higher studies in Canada, his car met with an accident on his way to airport, which results him hospitalized for a period. Incidentally, he receives Madhu's blood. Madhu's convinces her father to go for higher studies and not be bothered with marriage. Sidhu cannot make it to Canada and joins the same college as Madhu. Incidentally, they meet in a temple. They become good friends, while also helping Madhu's friend, Shanti, and Siddu's friend, Babu (Sivaji), who are in love. Shanti's father is a big goon, and Madhu and Siddhu ensure that Shanti and Babu do not reveal their love to Shanti's father and get into any trouble. One day while Madhu is studying for exams, Siddhu happens to come. Madhu's sari moves in the breeze, revealing her navel. Siddhu ogles it. Madhu accuses Siddhu of ogling, and Siddhu denies it. An argument breaks out leading to them accusing each other of hiding their feelings for the other. They end their friendship.
After the summer holidays, Shanti's dad finds out about Babu. Madhu and Siddhu meet again for the sake of their friend's love. In the course of getting Babu and Shanti together, they realize they love each other. The movie ends happily, with the duo married and happily squabbling.Pawan Kalyan as Siddhartha Roy / SiddhuBhumika Chawla as MadhumatiSivaji as BabuRajan P. Dev as Gudumba SattiBetha Sudhakar as Dance MasterNassar as Siddhu's fatherJanaki Sabesh as Siddhu's motherVijayakumar as Madhu's fatherSudha as Madhu's motherAli as ChotuMumtaj as AnithaS. J. Surya in a guest appearance
The film had a 50-day run in 101 centres, a 100-day run in 79 centres and a 175-day run in five centres. It also set a record for highest-grossing film in the Nizam State of Andhra Pradesh, where it earned ₹200 million in only 100 days. Kushi grossed ₹200 million (US$3.1 million) in 100 days worldwide and collected ₹230 million (US$3.6 million) in 150 days worldwide. Its total collections were ₹220–230 million. It was the most popular Telugu film in 2001.
Kushi grossed ₹ 200,000,000 in theatres across the state. Sandhya 70mm dts A/C officials stated that the film collected ₹13 million (US$200,000) from their theater in 100 days in 50 theaters
Manisharma composed the soundtrack of the film. The audio was released in Hyderabad and became an instant hit. The audio was released in CDs for the time in Telugu along with cassettes by Aditya Music. A classic song called "Aaduvari Maatalaku", written by Pingali from the movie Missama, was remixed by Manisharma. It was sung by Murali. All of the songs became chart-busters especially "Ammaye Sannaga" song written by Chandra Bose and sung by Udit Narayan and Kavita Krishnamurthy. Other lyricists are A.M. Ratnam, Abbas Tyrewala, Chandra Bose, Pingali and Suddala Ashok Teja.