In 2006, "Bangaram", directed by Tamil director Dharani was released. During March 2006, Kalyan launched his second directorial venture "Satyagrahi", produced by A. M. Rathnam, which would be a tale questioning the atrocities in society. After spending a few months on pre-production by signing with P. C. Sreeram and A. R. Rahman, the film was later suddenly shelved. Later that year, he appeared in "Annavaram", directed by Bhimaneni Srinivasa Rao. Asin, and Sandhya were cast alongside Pawan in the film and the film was produced under Super Good Films. The film was released on 29 December 2006 and collected 230 million in 3 weeks and in 70 Days. The film was a remake of the Tamil film "Thirupaachi". Kalyan also choreographed the song "Neevalle Neevalle" in this film.