Hi Siva,
SDK2.0 does not need to be installed.
Recommended Usage:
=> To download SDK 2.0 package:
1. Go to http://kex.nxp.com/ and click "Build an SDK"
2. Create a new configuration: select processor or board
3. Select SDK version 2.0 and "Kinetis Design Studio" as a toolchain
4. Use the 'Build SDK Package' button to create the ZIP file
5. Download the ZIP package and unzip it into a user folder (recommended to unzip into c:\nxp\{package-name}\)
=> To Create new project with the wizard:
1. Start Kinetis Design Studio
2. Select the menu File > New > Kinetis SDK 2.x Project
3. Enter project name and select path where you have unzipped the SDK package from previous step and press [Next>]
4. Select board or processor or board example and press [Next>]
5. Finish wizard
=> Now you can build and debug your project
Regards
Marek