Resolve Android SDK not bundled with Android Studio “SDK tools directory is missing”

The recent version of Android Studio does not include Android SDK tools, which should be downloaded and installed manually. These are the steps I followed. Hope it will be useful!
My Android Studio SDK Manager icon was greyed out and when I tried to create a new project in Android Studio, I got the error:

Your Android SDK is missing, out of date, or is missing templates. You
can configure your SDK via Configure | Project Defaults | Project
Structure | SDKs

To resolve this, the Android SDK tools should be downloaded manually.

1. Follow the instructions in the video and download Android Studio.
   
2. Download the standalone Android SDK tools.
   
   
3. This will launch the following screen. Proceed with wizard. Set the installation path to somewhere it can be easily found (I had problems accessing when I had it in the default App Data folder)
   
   
4. After completion, the SDK Manager will be launched. Now install the packages. As the Sunshine app is built using API 19, I installed it along with the newest version API 21.
   Sit back and relax while all the stuff gets downloaded!
   
   
5. Launch Android Studio. It can be found in android-studio -> bin
   
   
6. The Android SDK Manager is still greyed out. Lets manually add the SDK location now.
   Configure->Project Defaults->Project Structure ->SDKs
   
   

Now we are good :D! Happy developing!