The film got embroiled in a controversy regarding the title which was originally registered by director Gunasekhar for a film with Ravi Teja. Finding no solution, he gave up the title and later that film was made as Nippu (2012).
The film marks a second collaboration between director Mallikarjuna Malli and actor Nandamuri Kalyan Ram after Abhimanyu (2003). They would later go on to collaborate a third time for Sher (2015).
According to the lead actor Nandamuri Kalyan Ram, the film was titled "Kathi" (meaning sword in English) because his character walks on a razor edge situation in the entire second half, and is himself also like a sword that could be used for constructive and destructive purposes. When somebody tampers with his family members, he shows the destructive side of his sword.
The film was completed in 80 working days.