An Indian entrepreneur who lost his entire crop to drought a decade ago is now investing ₹214 crore in artificial intelligence-enabled hydroponic farming to cultivate high-value spices and medicinal plants in Karnataka.
Vivek Raj Develops Patented AI Farming Technologies
Vivek Raj, Founder and CEO of Panama Hydro-X, said the company has developed four patented AI technologies after investing ₹146 crore in research and development over several years.Speaking in New Delhi during the AI Impact Summit 2026, Raj said the systems can detect crop diseases before physical symptoms appear and provide optimized artificial lighting to enhance photosynthesis.
The company has received patents from the UK, Germany, and Australia. Raj confirmed that after achieving encouraging results during the trial phase, the company is now preparing for large-scale implementation.
16 Acres Acquired in Moodbidri for Commercial Rollout
Panama Hydro-X, a limited liability partnership funded by Panama Corporation, has acquired 16 acres of farmland in Moodbidri in Karnataka.The hydroponic farming infrastructure is scheduled for completion by the end of 2026, with the first commercial harvest expected in June 2027.
The land allocation plan includes:
Five acres for saffron
Five acres for ginger
Six acres for nine medicinal plants including turmeric and ashwagandha
According to Raj, saffron and ginger will be exported to cosmetics and pharmaceutical companies, while medicinal crops will be sold in the domestic market.
AI Trials Deliver Threefold Yield Increase
During trials, AI-enabled hydroponic farming produced 1,200 bags of ginger per acre compared to 400 bags from traditional outdoor farming. Each bag weighed 60 kilograms.The technology also enables three annual crop cycles instead of one.
The company’s four patents cover:
An AI-enabled smart farming monitor
A hydroponic saffron disease detection system
A Diffused Concurrent Convolutional Neural Network that uses cameras to detect leaf colour changes
A smart LED farming system
Raj stated that the company will not immediately license its technologies, preferring to first establish commercial success at scale.
Panama Hydro-X, registered in India and the United States, plans to hire 37 engineers in Mangalore to support operations.
From Drought Loss to Agri-Tech Innovation
Raj’s move into agricultural technology follows a major setback in 2013-14, when severe drought destroyed his entire 5,000-acre ginger crop in Chikkamagaluru district.At the time, he had provided five years of advance payments to farmers through Panama Nature Fresh Pvt Ltd, which he established in 2014.
Government loan waivers covered farmers but not agricultural entrepreneurs, prompting Raj to begin investing in indoor farming research in 2016. The company received its first patent from Australia in 2021.
Founded in 2004, Panama Corporation began as a minerals trading company sourcing 35 categories of minerals across more than 70 countries, building logistics networks across Asia, Africa, Europe, and the Americas.
The group’s technology arm, Panama Agri Innovations, develops AI-assisted hydroponic systems for high-value crops including saffron, Himalayan mushrooms, and medicinal botanicals.
With ₹214 crore committed to implementation, Panama Hydro-X is positioning AI-enabled hydroponic farming as the next phase of its growth strategy in Karnataka.
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