It was established in 1947 by director-producer Kunchacko (1912–1976) and film distributor K. V. Koshy in Pathirappally, Alappuzha in Kerala.
[1] The studio influenced the gradual shift of Malayalam film industry from Chennai, Tamil Nadu to Kerala.
Udaya's professional rivalry with P. Subramaniam's Maryland Studio was quite famous.
[5] Kunchacko established a film production company named Udaya Pictures in 1947, though he continued production at traditional base of Malayalam film, Chennai, but it all changed in 1947 when he came together with film distributors K. V. Koshy and R. A. Krishnan and established Udaya Studios in Alleppey (Alappuzha), and in time the studio also set up its own distribution network.
Years after the defunct Excel Productions, Kunchacko Boban established a new film production company Udaya Pictures and produced the 2016 film Kochauvva Paulo Ayyappa Coelho directed by Sidhartha Siva, thus reviving the prestigious Malayalam production house after 30 years.