Hi Prem,
1. Backup using snap creator can take snapshot backups on the same volume itself. is there is a way I can take the backup on separate volume which i can dedicate for SS backup.
What do you mean by SS backup? You can either add volume to VOLUMES parameter or you can create a new config and just include that volume. If you are using VMware plugin it will update VOLUMES parameter but you can turn this feature off, there is a DISCOVERY option you can set to N under VMware config settings, then you can include your volume and it will snapshot both. Lots of options but I dont still understand what you are trying to accomplish, more detail please.
2. I am taking backup of entire VM folder which is hosted on LUN, While restoring backup will be restore exactly on same VM folder even if the original VM folder has been moved to other volume by Storage DRS.
Yes SC vmware plugin is not aware of Storage DRS and the issue is more complex than that. If we create a snapshot it is bound to a volume. If you move VM to a new volume restore becomes complex as you need to track and maintain state of where VMs are and were. One of things we are doing is adding backup catalog to SC but this will take time, however once it is in place we would have ability to do this kind of thing.