Her association as the brand ambassador was announced on Tuesday via a statement.
"It is an honour and a privilege to become an IWC brand ambassador and represent the brand in India and around the world. I admire IWC for its uniqueness and creative storytelling, which have characterized the brand throughout its history," Sonam said.
IWC Regional Brand Director Luc Rochereau said Sonam "is a powerhouse performer and a thorough professional".
"Her scintillating charm and elegance resonate with our brand philosophy, and we have found the perfect partner in her," Rochereau added.
To begin the partnership, Sonam will be present at the 27th Salon International de la Haute Horlogerie (SIHH) in Geneva in 2017, alongside other prestigious guests and IWC brand ambassadors from across the world.
The daughter of veteran actor Anil Kapoor, Sonam is known as much for her fashion sense as her acting skills. She is credited for films like "Aisha", "I hate Luv Stories", "Raanjhanaa" and "Neerja".
(With IANS Inputs)