India's mobile market is expanding rapidly

The company should make a bid by early February, Arun Sarin said after talks with Indian trade minister Kamal Nath.

But he declined to comment on financial details. Reports suggest Vodafone's bid may value Hutchison Essar at $17-18bn. An offer could spark a bidding war with India's Reliance Communications, which is also interested in Hutchison Essar.

Other possible bidders for the in the Indian mobile firm are thought to include the London-based Hinduja brothers, Malaysia's Maxi Communications and Egypt's Orascom Telecommunications.

Expansion plans

Mr Sarin confirmed that Vodafone had begun examining the books of Hutchison Essar - which is majority-owned by Hong Kong's Hutchison Whampoa.

He added that he would also be open to a partnership with Hutchison's partner in the venture, Essar Group.

A takeover of Hutchison Essar would be consistent with Vodafone's strategy of expanding in fast-growing markets to offset slower European growth.

Hutchison Essar currently accounts for about 16% of India's mobile phone market.

Vodafone currently has interests in emerging markets including Egypt, Romania and India - and underlined its ambitions for further expansion in similar markets at an investor meeting earlier this month.