Aswini Dutt and K Raghavendra Rao established a new banner named 'Swapna Cinema', which is named after the daughter of Aswini Dutt. The first film they made on that banner was 'Student No.1' with NTR and Gajala. K Raghavendra selected Raja Mouli, his assistant director of 'Santhi Vanam' Tele serial, as the director. Incidentally Raja Mouli is the son of Samarasimha Reddy's storywriter Vijayendra Prasad and the cousin of music director Keeravani.

NTR could not be established well as a lover boy with his debutant film 'Ninnu Choodalani'. K Raghavendra rao spotted the mass potential NTR had and tapped it to the maximum extent with a powerful mass film 'Student No.1'. NTR has found that his forte lies in mass films. NTR chose the mass category as all other youngsters are making love films. Student No.1 established NTR as the mass star, if the openings generated by Subbu is any indication.

The heroine entered Telugu film industry as 'Raaji' with a flop film 'Naalo Vunna Prema', a Kannada remake. She changed her name to Gajala with Student No.1 and it proved to be lucky. She is doing in lots of films opposite young heroes now.

With the success of Student No.1, NTR was signed in prestigious film in the direction of inscrutable B Gopal. Big producer like AM Ratnam too announced a mass movie titled 'Naga' with NTR as hero.

After a gap of many years, Keeravani has come up with a musical hit. One of the major contributors for this film success is nice melodious music by Keeravani.

This film is a very big hit in Andhra, Uttarandhra and Ceded area. Student No.1 is a moderate hit in Nizam.