The billionaire Hinduja family today joined Vodafone and Reliance Communications in the $20 billion (£10.3bn) battle for Hutchison Essar, India's fourth-largest mobile operator.

Ashok Hinduja, the Hinduja TMT executive chairman, told Reuters: "We have expressed our intention to Hutchison and we are waiting for confirmation whether they want to sell the stake. We are not interested in anything less than 51 per cent as we would like to hold a controlling stake."

The group added that "Funds will not be an issue if we want to pursue the bid".

Vodafone and Reliance Communications, India’s second-largest mobile company, have already flagged their interest in buying a stake in Hutchison Essar, which is 67 per cent owned by Hong Kong-based Hutchison Telecommunications International.

The remaining 33 per cent is controlled by India’s Essar, which is also interested in increasing its holding in Hutchison Essar.

Shashi Ruia and Ravi Ruia, the brothers behind Essar have arranged financing for their approach from Citibank and Morgan Stanley. It is understood they have first right to acquire Hutchison Whampoa stake.

Essar is understood to value the group at about $18 billion (£9.2 billion).

Investors in Vodafone, which can acquire up to 74 per cent of an Indian company, were divided over the British group's pursuit of Hutchison Essar, after Reliance Communications, India's second-biggest mobile operator, entered the race for control of its smaller rival. Some have expressed fears that Vodafone risks overpaying for the company as a bid battle heats up.

Last month, Macquarie, the Australian bank, put Hutchison Essar's enterprise value at $13.7 billion, with an equity value of $12.18 billion.

Reliance, which is being advised by JPMorgan, has argued that a tie-up with Hutchison Essar would create "compelling value" for all stakeholders.

Hutchison Whampoa, which is being advised by Goldman Sachs, indicated last week that it is now only willing to entertain offers for its stake well in excess of $14 billion.

Aside from Vodafone, Essar, Reliance Communications and now Hinduja a consortium of private equity firms is also thought to be eying the group.

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