India's mobile market is growing fast as consumer spending rises

Last week, the UK group announced its intention to seek a majority stake in Hutchison Essar, as part of its drive to expand in fast-moving markets.

But Indian conglomerate Essar, which has 33% of Hutchison Essar, is now said to have offered to buy the rest.

Hong Kong-based Hutchison Telecom says several firms are after its 67% stake.

Hutchison Telecom also runs networks in countries including Thailand and Israel, but relies on its Indian stake for as much as 80% of its operating income.

The company is part of the Hutchison Whampoa conglomerate, which has reportedly indicated that only offers of more than $14bn will be considered.

Growing market

According to accounts in several British newspapers, Essar has made an approach to Hutchison to buy out the entire business, in a deal valuing the joint venture at about $18bn (�9.2bn).

The buy-out would be a severe blow to the ambitions of Vodafone, which is eager to build a more substantial presence in the world's fastest-growing telecoms market.

Vodafone already owns 10% of Bharti Airtel, the market leader in India.