New bidder in Indian mobile fray

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Indian billionaires, the Hinduja family, have joined the race to buy a majority stake in Hutchison Essar, one of India's leading mobile phone firms.

The Hinduja Group has become the latest firm to say it would be keen to buy a controlling stake in Hutchison Essar, India's fourth-largest mobile company.

Plans by Hong Kong's Hutchison Whampoa to sell its 67% stake in the Indian business have sparked a bid frenzy.

Vodafone and Reliance Industries have already expressed their interest.

Crowded field

India's Essar Group, which already owns 33% of the business, is also reported to be preparing a bid to take control of the operation.

Under the existing shareholder arrangement, Essar Group is believed to have the right to first refusal over Hutchison's stake but the terms of this arrangement are unclear.

Analysts believe the stake could be worth up to $20bn (£10.2bn), as it would give the successful bidder a leading position in one of the world's fastest growing mobile markets.

We have expressed our intention to Hutchison and we are waiting for confirmation whether they want to sell the stake Ashok Hinduja, Hinduja Group

The Hinduja Group, whose interests span banking, healthcare and truck manufacturing, once owned a 5% stake in Hutchison Essar but sold it last year.

Ashok Hinduja said the company would be interested in a deal giving it control of Hutchison Essar.

"We have expressed our intention to Hutchison and we are waiting for confirmation whether they want to sell the stake," he told Reuters.

The family-owned firm had the financial resources to mount a bid, Mr Hinduja added.

Fast-growing market

The Hindujas are likely to face fierce competition from Vodafone, which is looking to focus on fast-growing markets like India, and Reliance Communications, a unit of one of India's largest businesses.

Both firms have expressed their interest in the stake but have yet to submit formal offers.

According to the Economic Times of India, Essar will wait for other bids to come in before making its move.