Vivek Raj to Invest ₹214 Crore in AI-Enabled Hydroponic Farming in Karnataka

An Indian entrepreneur who once lost his entire crop to drought is now investing ₹214 crore in artificial intelligence-enabled hydroponic farming to cultivate high-value spices and medicinal plants in Karnataka.

Vivek Raj, Founder and CEO of Mangalore-based Panama Hydro-X, announced the large-scale investment as the company prepares to commercialize its patented AI-driven farming technologies.

AI Patents Backed by ₹146 Crore R&D Spend​

Raj said the company has invested ₹146 crore in research and development over several years, resulting in four patented artificial intelligence technologies. These include:

• 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 that optimizes artificial lighting for photosynthesis

The patents have been granted in the United Kingdom, Germany, and Australia. Raj said the company achieved encouraging results during the trial phase and will now move toward full-scale implementation.

Hydroponic Infrastructure in Moodbidri by 2026​

Panama Hydro-X, funded by Raj’s Panama Corporation and structured as a limited liability partnership, has already acquired 16 acres of farmland in Moodbidri, Karnataka. The hydroponic infrastructure is expected to be completed by the end of 2026, with the first commercial harvest targeted for June 2027.

The company plans to dedicate:

• Five acres for saffron
• Five acres for ginger
• Six acres for nine medicinal plants, including turmeric and ashwagandha

Saffron and ginger will be exported to cosmetics and pharmaceutical companies, while the medicinal crops will be sold within India.

Yield Triples in AI-Based Trials​

During the trial period, AI-enabled hydroponic farming delivered significantly higher yields. According to Raj, ginger production reached 1,200 bags per acre, compared with 400 bags per acre under traditional outdoor farming. Each bag weighs 60 kilograms.

The system also enables three crop cycles per year, compared to one annual cycle in conventional methods.

Raj said the company does not intend to license its technologies immediately and will first focus on demonstrating commercial success at scale.

Hiring Engineers in Mangalore​

Panama Hydro-X, registered in India and the United States, plans to recruit 37 engineers in Mangalore to support operations as it scales its hydroponic farming model.

From Drought Loss to Agri-Tech Innovation​

Raj’s shift toward agricultural technology follows a severe setback during the 2013 to 2014 drought, when his entire 5,000-acre ginger crop in Chikkamagaluru district was destroyed. The losses were incurred under Panama Nature Fresh Pvt Ltd, a company he established in 2014 after making advance payments to farmers.

Government loan waivers applied to farmers but not to agricultural entrepreneurs. In response, Raj began investing in indoor farming research in 2016. The company secured 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. Over time, it built logistics networks across Asia, Africa, Europe, and the Americas.

Its technology arm, Panama Agri Innovations, now focuses on AI-assisted hydroponic systems for high-value crops such as saffron, Himalayan mushrooms, and medicinal botanicals.

With a ₹214 crore commitment and patented AI platforms, Panama Hydro-X is positioning itself to expand controlled-environment agriculture in Karnataka, targeting export markets and domestic pharmaceutical demand.