The film begins seven years later after the events which occurred in the prequel Sandakozhi. Balu (Vishal) arrives from New York City seven years later to his birthplace. He and his father Durai Ayya (Rajkiran) have to protect a young man from a woman who has sworn vengeance on his entire clan. Balu and Durai are often compared to a couple of lions, and the two characters behave so. This is why when Pechi (Varalaxmi Sarathkumar) and the men in her family try to hunt down Anbu (Johny Hari), the last male in a clan they have sworn revenge against, because of her husband’s live murder in front of the whole village, but they are unable to do anything. Meanwhile, Balu falls for Sembaruthi (Keerthy Suresh), a village damsel, after losing his loved one seven years ago, Hema (Meera Jasmine). The rest of the film shows how Balu deals with his ups and downs of his family problems given by Pechi and the massive hospitalization of his father after a slit in his throat.

Sivappu means red in Tamil and signifies love, anger, poverty or death. The story showcases the life of construction labourers in the southern part of Tamil Nadu.