This task turned out to be easy to accomplish. Just 2 simple commands and voila.
1. mkisofs -dvd-video -o image.iso /dvd
where /dvd - the folder that contains VIDEO_TS folder.
This command will create iso file to burn to dvd disc.
2. growisofs -dvd-compat -Z /dev/scd0=image.iso
The second command burnes iso image to the dvd disc.
