"I am not your leader, I am your tool.. this gathering is full of leaders," he said moments before announcing the party's name that roughly translates to "Centre for People's Justice."
The party flag was unveiled just before Haasan announced the name of his party with a brief pause heightening the dramatic effect as the huge crowd roared its approval.
The flag in white background has six hands joining together with shades of red over three hands and rest with white along with a star in between surrounded by a star like background in black.
Citing a Tamil proverb of 'Oru Soru,' which means a small example of a whole lot, he said the launch was just the first step for 'makkal atchi,' (people's rule).
Clad in a white shirt and a black trousers, a smiling Haasan arrived on the stage showing the thumbs up sign to his fans who had arrived in large numbers to announce the party name.
Cultural events preceded the lauch.
Haasan arrived here from Rameswaram after visiting former President A P J Abdul Kalam's house where he sought blessings from the late leader's brother.
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