Mandvi was founded as a port town by the Khengarji, the king of Kutch, in 1574. Mandvi flourished quickly as it had become a very important port of Gujarat. In a very small span of time all the landmarks of Mandvi like the Sundarwar temple, the Jama Masjid, the Lakshminarayan Temple, the Kajivali Mosque and the Rameshwar Temple were built.
As an important port, Mandvi had a fleet of 400 ships that sailed as far as England and returned. Mandvi was protected with a fort that had an 8 m high wall, many gates and 25 bastions. Presently this wall is almost destroyed, but the bastion on the southwest is the largest and still acts as a lighthouse. Mandvis importance as a port has faded because the large modern ships are unable to dock here, but the tradition of shipbuilding is still carried on; by hand on the banks of the Rukmavati River.
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