Vodafone in India

   India, with 1,1 billion people of which 17 percent of official figures have a phone, either fixed-line or mobile, is the world's fastest-growing mobile phone market. Vodafone Group is considering taking a controlling interest in Indian mobile phone operator Hutchison Essar.

   Arun Sarin, Vodafone's Chief Executive, is keen to move into areas that are not saturated. "The Board of Vodafone continues to believe the mobile market in India has great potential and is therefore considering the acquisition of a controlling interest in Hutch Essar."

   Hutchinson Essear, India's number four mobile service provider is 67 percent- owned by Hong Kong tycoon Li Ka shin's Hutchison Telecommunications International Ltd. Hutchinson Essear ia a joint venture between India's Essae Group and Hutchinson Telecommunication and has 16 percent of the mobile market in India.

   Vodafone already has a 10 percent stake in the largest operator Bharti Airtel which with Reliance Communications have over 20 percent of the mobile market. Reliance also plans to bid for Hutchinson Esser .

   Hutchinson Esser said on Friday it has been approached by various parties regarding a possible sale but no agreement has been entered. "The process is at an early stage and may or may not lead to a transaction" , said the UK Company which has to expand into emerging markets like India, But should not pay high a price for Hutchinson Esser, analysts say.

   Confirmation of Vodafone's interest could draw out interest from Reliance India's second-largest mobile services provider, which was considering moving on its smaller rival only after Vodafone revealed its strategy. The Economist Times reported.

   Indian newspaprers have also said that Malaysia's Maxis Communications, which last year bought 74 percent in India's Aircel, and Egypt's Orascom Telecom were also potential suitors for Hutchison Essar.

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