New Delhi, February 16 An Indian entrepreneur who lost his entire crop to drought a decade ago is investing ₹214 crore in artificial intelligence-enabled hydroponic farming to grow high-value spices and medicinal plants in Karnataka.
Vivek Raj, founder and CEO of Mangalore-based Panama Hydro-X, said the company has developed four patented AI technologies after spending ₹146 crore on research and development over several years.
The technologies include systems that can detect crop diseases before physical symptoms appear and provide optimized artificial lighting for photosynthesis, Raj, who was here for the AI Impact Summit 2026, told
"We have achieved good results during the trial period and have received patents for our AI technologies from the UK, Germany, and Australia," said Raj, 40, who has a personal net worth of USD 700 million. "We will proceed with large-scale implementation."
Panama Hydro-X, a limited liability partnership funded by Raj's Panama Corporation, "will invest ₹214 crore for hydroponic farming." The company has already acquired 16 acres (6.5 hectares) of farmland in Moodbidri in Karnataka, where it will build hydroponic farming infrastructure by the end of 2026. The first commercial harvest is expected in June 2027.
The venture plans to allocate five acres each for saffron and ginger, with the remaining six acres for nine medicinal plants, including turmeric and ashwagandha. Saffron and ginger will be exported to cosmetics and pharmaceutical companies, while medicinal crops will be sold domestically, Raj said.
TRIPLED YIELD INCREASE
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During trials, AI-enabled hydroponic farming produced 1,200 bags of ginger per acre compared with 400 bags from traditional outdoor farming, with each bag weighing 60 kg, Raj said. 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 (DCCNN) that uses cameras to detect leaf colour changes, and a smart LED farming system.
"One thing I can guarantee is that the crop will not die," Raj said, though he added that the company would not immediately license the technologies, preferring to first demonstrate commercial success.
Panama Hydro-X, registered in India and the United States, plans to hire 37 engineers in Mangalore for operations.
FROM DISASTER TO INNOVATION
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Raj's foray into agricultural technology stems from personal loss. In 2013-14, severe drought destroyed his entire 5,000-acre crops of ginger in Chikkamagaluru district, causing massive losses at Panama Nature Fresh Pvt Ltd, which he established in 2014 with advance payments to farmers.
"My entire crop failed due to drought. I had given five years of money upfront to the farmers," Raj said. "If any other entrepreneur was there, he would have committed suicide."
Government loan waivers covered farmers but not agricultural entrepreneurs, prompting Raj to invest in R&D for indoor farming 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. The firm developed logistics networks across Asia, Africa, Europe, and the Americas.
Panama Agri Innovations, the group's technology arm, develops AI-assisted hydroponic systems for high-value crops, including saffron, Himalayan mushrooms, and medicinal botanicals.
