The legendary filmmaker, 79, was suffering from cancer for the past few months.
Ramanaidu held the Guinness Book of World Record for the most films produced by an individual, with more than 150 films in 13 Indian languages to his credit.
He was also the founder of the prolific Suresh Productions.
Ramanaidu served as Member of Parliament from Telugu Desam Party from 1999 to 2004 and was conferred with the Padma Bhushan -- India's third highest civilian awards -- in 2012, in recognition of his contribution to Telugu cinema.
He was also felicitated with the prestigious Dada Saheb Phalke Award for Lifetime Achievement in the film industry in 2009.
Ramanaidu was also very active in social work, including the Ramanaidu Charitable Trust that was founded in 1991.
He is survived by wife Rajeshwari Daggubati and three sons, star actor sons Suresh Babu Daggubati, Venkatesh Daggubati, and daughter Daggubati Lakshmi.
Several stars from the Indian film industry took to Twitter to pay tributes:
Taapsee Pannu: A legend left us today. Privileged to have met him in person a few times. RIP Ramanaidu garu. Strength to the family @RanaDaggubati
Mohan Babu M: RIP one of the greatest producer Dr.RamaNaidu Garu, an inspiration to many producers and I have learnt a lot from him. Disheartening news
Allari Naresh: Suryudu Asthaminchadu! Black day for Whole TFI to Loose a Legendary Soul like D Rama Naidu Garu! Man of True Inspiration & Wonderful Human!
Riteish Deshmukh: Legendary filmmaker Daggubati Ramanaidu passes away-his contribution in building Indian Cinema is immense. thank you sir. RIP
Samantha Ruth Prabhu: Another day another loss. RIP Ramanaidu garu . Strength to the family.
Madhur Bhandarkar: Sad to know Dadasaheb Phalke awardee, veteran producer of South & Hindi films, D Rama Naidu is no more. Heart goes out to d family. RIP,Sir.
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