 At this time, Krishna established his own production house, Padmalaya Films and produced several high budget films such as "Mosagallaku Mosagadu", "Pandanti Kapuram", "Devudu Chesina Manushulu", "Alluri Seetharama Raju" and "Agnipariksha".With his friend Vijaya Nirmala, Krishna also set up another production house called Vijaya Krishna movies, and produced some critically acclaimed films, including "Meena" and "Devadasu".