Chennai, Feb 23 (IANS) City-based power steering systems manufacturer Rane TRW Steering Systems Ltd Wednesday launched its new product here and said it will set up its own power steering fluid plant once the volumes for its product picks up.

The company is also expanding the capacity of its power steering systems by 20 percent.

Launching the power steering fluid Power Cruze here Wednesday Harish Lakshman told reporters: "This is the first time in India a power steering systems manufacturer is venturing into the fluid business. We will set up a dedicated plant for this product once volumes pick up."

Presently, the company sources the fluid, made as per its specifications, from another city-based lubricant manufacturer.

According to R.B. Rajan, vice president (marketing), the company is targeting to sell around one million litres in the next three years.

He said the market size for power steering fluid for commercial vehicle in India is estimated at around Rs.150 crore.

Priced at Rs.239 per litre pack, Rane TRW is now focusing on the commercial vehicles segment and later launch a similar product for passenger cars.

Rajan said the company will be using its existing distribution network to sell the new product.

Meanwhile, Rane TRW is expanding its capacity by 20 percent to 60,000 units per annum as the demand for its product are picking up, G. Parthipan, president of the company told IANS.

According to him, the outlay for the investment will be finalised soon.