The company is not foraying into smartphone manufacturing and would only be lending its brand name for use on a new smartphone available only in China to market Pepsi gear like apparel, soda and food, reports stated.

"Technology is a key cultural pillar at the heart of consumer interaction. Pepsi has no plans to get into the mobile phone manufacturing business, but we are committed to engaging with consumers in innovative ways to grow our brand," a company spokesman was quoted as saying.

The phone is an opportunity for the world's third largest owner of food and beverage brands to promote its other products in China by showing its logo on frequently used mobile phones.

According to reports, the new device, called the Pepsi P1, will be powered by Google's Android operating system and would feature a camera and 16 gigabytes of storage for a price of US 205.

China-based Shenzhen Technology Co. will likely manufacture the device that will bear Pepsi's logo. According to reports, the new phone would be unveiled in Beijing on October 20.